I haven’t talked about my Lunch Experiment or Adult Allowance for quite a while, so I thought it was time for an update!
The REIT stock “ANH” dropped 11% since I bought it, but surprisingly with the dividends received so far, I’ve still even on the amount invested overall… I also purchased a small position (only 1/2 of what I put in ANH) in a stock “EVEP” (an energy stock) that also provides a dividend.
The EVEP dividend only pays 8%, but the stock is up almost 40%, so from a total stock evaluation stand point I’m up a combined total of a little over $200.
Okay, to summarize, the valuation of the stocks are actually up which is great, so I can count the dividends from both stocks entirely. The amount the dividends per week comes to $8.00 (I can only buy soup when I eat out, but it’s a start).
So my experiment so far is successful. I now generate enough income for 1 day out of the 5 work days for a lunch paid for by the dividends (yes, I know I’m not considering taxes…)! I decided to keep doing the experiment! I also decided to diversify into other dividend yielding stocks. I know that the stock ANH will probably decrease their dividend in the near future, so the more I can diversify the better!
To “prime the pump” I borrowed money from my account to start this, and I’ve been slowly paying myself back. I still have 8 weeks left, then I will start saving money again for investing in more stocks for my Lunch Experiment!
While the amounts may seem trivial, all great things start out small, and so did this! You see, this is my first true “Dividend Fund“!!!
Eventually, I plan on creating a Christmas, Vacation and “Real Estate Tax” Dividend Funds!
Have you considered creating such Dividend funds or do you have alternative ideas?