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 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 Name | Anworth | EV Energy | Chimera | ||
| Stock Ticket | ANH | EVEP | CIM | ||
| # of Shares | 260 | 45 | 600 | ||
| 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 Yield | 12.22% | 5.63% | 17.26% | ||
| Act. Div/Qtr | $57.20 | $34.20 | $102.00 | ||
| Total Dividends | $773.60 | ||||
| 52 weeks | 52 | ||||
| Dividend / week | $14.88 | ||||
| Total Gain in | |||||
| Stock Apprec. | $1,178.61 | ||||
| % Change | 21.47% | ||||
| 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
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:)
Yes, it does add up to a pretty penny!
I’m excited to try and cook at least once a week for the family…
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!
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!
I’m hoping to beat the dividends cuts, as soon as the fed raised the rates, the dividend will go quickly.
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.
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…
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 🙂
Humans are dynamic. It’s okay to change goals in life.
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