Smart Reasons to Save, Use and Invest Money

Dividend Stocks, Free Lunch Experiment #10

I thought my experiment would have a setback with the downturn in the market, but surprisingly, since my last update, it’s still up.

Dividend Experiment
Dividend Experiment Update

It’s been two months since my last update, and I after some passive thinking, I’ve come to the realization that my goal for the experiment has change on me.  I no longer want to spend much on lunch, and going out once a week would be just fine with me.  My lunches are now a production time where I work on blogging.

So the question is, should I continue to use the dividends on spending?

I’ve decided yes I should, but instead of lunches, I’m going to spend the money better foods for my family.  I will use the money to make more nutritional food at home.  I’ve been wanting to expand into this area for a long time, and this money will help both me and my family (at least at a nutritional level).

 

Dividend Stats.:

Dividend Stock’s Lunch Experiment
Stock NameAnworthEV EnergyChimera
Stock TicketANHEVEPCIM
# of Shares26045600
Orig. Price$7.84$23.25$4.01
Curr. Price$7.20$54.04$3.94
Orig Cost$2,038.14$1,046.25$2,404.80
Curr Value$1,872.00$2,431.80$2,364.00
Annual Yield12.22%5.63%17.26%
Act. Div/Qtr$57.20$34.20$102.00
Total Dividends$773.60
52 weeks52
Dividend / week$14.88
Total Gain in
Stock Apprec.$1,178.61
% Change21.47%
Amt Loaned to myself:$1,726
Amt paid back to date:$1,726
Amt Still Owned:$0
Totals
Cumulativie Stock Value:$6,667.80
Dividend Payout / Yr.:$773.60
Dividend Payout / Qtr:$193.40
Dividend Payout / Wk.$14.88

 

On with the Update:

  • Overall, the “Total Return” of my investments since investing in 2009 is up 21.47%.  Note, the change is not per year, but simply the percentage gain of what was originally invested vs the current value.
  • The ”Cumulative Value” of my investments equal $6,667.80!  This is money that would have went to the restaurant owner and to the waiter in tips.  But now it’s sitting in my brokerage account earning me a dividend!
  • With a dividend of $14.88 a week, it appears nice, but it’s based on dividends that may not be sustainable.

 

Since I’ve change the goal of this experiment, I don’t think I will need as much as I use to need on a weekly basis.  So, I’m thinking about shifting some (if not all) of my investments into less risky (from a dividend perspective) stocks.  I’ve had a great ride, so I’m not in a rush to do this, but since the goal is more serious, I think that my investments should be too.

As far as the experiment goes, it’s been a great success and exceeded my expectations.  The change in my lunch rituals was an unexpected surprise and one that will get me one step closer to a purer state of frugality.

Cheers,

MR

14 Responses to Dividend Stocks, Free Lunch Experiment #10

  1. It’s amazing how much eating out lunch money can add up to in a year!

    I try to limit eating out to a couple of times per months and count on my wife’s excellent cooking for the rest of the month:)

  2. It is interesting to see the evolution of thought! Is it maturity or something else? Most of us change our goals over time, so this is not a surprise.

    • I like the idea of having my lunches paid for free, but I would rather buy some good food for the family and prepare it at least once a week.

      Hopefully it will be fun!

  3. I think that is a good strategy! Those are good payouts but as you say, not sustainable!

    Moving a part of it to slower but more stable dividend paying companies with a potential for growth is the way to go.

    Doing it before the dividends are cut is smart!

  4. The dividend % is really great overall. $15 a week is not too shabby. It’s great to help with more healthy food since fresh food is a bit more expensive. Good luck.
    Are the dividend going to be cut?

    • I think it’s a possibility when the feds decided to bump up the rates from near zero…

      The way things are going, it may take longer than I expected though.

  5. I sense a little bit of fear… If you are moving from those risky dividend plays because they are intended for retirement then I say go for it. But if this is just play money then I would say stick it out, the worst you can do is lose your 14 dollar a week cushion.

    • I’m finding some decent yields that will be consistent in other stocks. Since capital appreciation isn’t my goal with this experiment, I thought I’d shift gears and experience what fixed income would taste like. It is hard giving up those huge yields though…

  6. I am going to have to go back in time to read some of the other posts, but I get the impression that money spent during the workday eating out was shifted into dividend producing stocks. That sounds like a wonderful idea. There is nothing wrong with altering your mind set and using some of those dividends for more nutritious food.

    • You got it exactly right! The money to pay for eating out and tips were redirected into stocks with high dividend yields.

      Now I’m at a point where I want to shift to stocks that are more stable since I’m using the dividends for more nutritious foods for the family. I found that I now don’t really care to eat out everyday 🙂