EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.
The ability of the savings account to generate hidden profit by preventing small emergencies from becoming large ones shouldn't be overlooked. Its just another example of how Money Management works outside the portfolio.
Weekly Activity
$175 withdraw out of Emergency Savings for car repair
$100 deposit into Savings
$1.07 dividend from O
Model Portfolio Totals
Trading Account: $849.33
Estimated Monthly Income: $0 (Not ready to trade until Phase 1 completed)
Max amount in Forex trade (50% of account): $424
Max loss per trade (1% of account): $8
Portfolio stop (3% account): $25
Investing Account: $1,739.16
Estimated Monthly Income: $6.02 ($0.077 from DRIP shares)
Stock
WMT: $0.53 income/month
Energy
ERF: $1.70 income/month ($0.019 from DRIP shares)
REITs
O: $1.07 income/month ($0.014 from DRIP shares)
Bonds
JNK: $1.62 income/month ($0.030 from DRIP shares)
PCY: $1.09 income/month ($0.014 from DRIP shares)
Maneuvering Cash: $500
Savings Account: $775
Emergency: $475
Portfolio Protection
Trading Account: $50
Investing Account: $250
CDs: $0
Precious Metals: $0
Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others.
I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
On the investment tab above, your numbers do not match. YOC = Annual dividend rate/Average purchase price to buy the total shares.
ReplyDeleteIf you do this for Walmart YOC=1.48/57.64=2.57%
This doesn't work for the other ones that have DRIPPED. I know for sure ERF is not the same. Maybe you could do a video of how exactly you get these numbers. For example, for the cell M6 I have "equals A2/B2" expressed a percentage.
I am a numbers guy, so I sense I am missing somthing or your numbers or cell formulas are wrong somewhere.
By the way, excellent blog and videos.
Thanks for the compliment on the blog. Its appreciated.
ReplyDeleteShort Answer: You are correct. My formulas are incorrect for Average Share Price.
Long Answer: Originally I was using YOC for yield on my original purchase. To better show the effect of compounding DRIP shares. This has come up a couple times and caused more harm then good so I switched it to traditional Yield on cost. However I used the formula estimated dividends per year / total cost. I did this because I used that formula for the overall yield on cost of the entire portfolio. Then I copied it over to each position.
It should give the same result as the estimated dividends per year / average share price.
That is of course only true if one has their average share price formula correct which I did not. A left over from my yield on original cost formula.
There. It should be fixed. I moved the original shares purchased column out of the cost basis section. It was out of place and using that instead of total shares for my average in price is what got me into trouble.
ReplyDelete