Another $50 was
automatically sent to M1 Finance on 9/26/19 for the $50 per paycheck portfolio.
$550 has be sent so far. The portfolio's value as of market close on 9/27/19 is
$563.02, which includes $3.75 in cash that M1's algorithms were unable to invest.
Since late June, the dividend portfolio has collected $3.12 in dividends, per
M1.
Investing the same
amount into SPY, an ETF that tracks the Standard and Poor's 500 index, over
the same period would be worth $551.48 in invested funds with a $2.35 dividend
payment due on 10/31/19, for a total of $553.83.
For benchmarking
purposes, $2.35 will be "reinvested" at the market closing price on
10/31/19. I haven't yet figured out how to include the dividend in the tracking
sheet between the ex-dividend and payment dates. Leaving it alone and reinvesting
on the payment date (what I plan to do until I change the benchmark the a more friendly ETF--more on this below) will make it look like the dividend
portfolio is doing $2.35 better than it actually is.
One option is to
"reinvest" the SPY dividend on the ex-dividend date. I think that's
what all the investment calculators do when they display the data with
dividends reinvested (or they use the adjusted close data for the same purposes). Another option is
to adjust the dividend portfolio value down by the $2.35. I'm hesitant to add
additional columns because the ones currently displayed barely fit. I'm sure
there are better ways, but I don't have too much time to think about it right
now. So, as I'm a slacker, I'll leave it as is and for a month every quarter
there will be greater comparison error between the dividend portfolio and SPY than there otherwise would have been.
When I have more
time and the inclination, I will redo the benchmark as the VOO ETF, which is
Vanguard's version of SPY. It has a lower expense ratio (though there's not
much difference when you're under one tenth of one percent) and, more
importantly, the payment date is much sooner after the ex-date than SPY's. I
guess that's another example of the difference between a fund company owned by
its shareholders and one that isn't. Thank you Jack Bogle.
Date
|
Additional Investment
|
Running Total Investment
|
Dividend Portfolio Account Value
|
Additional Benchmark SPY Shares
|
Running Total Benchmark SPY Shares
|
SPY Closing Share Price
|
Benchmark SPY Value
|
Dividend Portfolio VS Benchmark
|
Comment
|
6/24/19
|
$200.00
|
$200.00
|
$200.00
|
0.681107
|
0.681107
|
$293.64
|
$200.00
|
0.000%
|
|
7/3/19
|
$50.00
|
$250.00
|
$252.22
|
0.167336
|
0.848443
|
$298.80
|
$253.51
|
-0.511%
|
|
7/18/19
|
$50.00
|
$300.00
|
$299.10
|
0.167320
|
1.015763
|
$298.83
|
$303.54
|
-1.463%
|
|
8/2/19
|
$50.00
|
$350.00
|
$343.48
|
0.170870
|
1.186633
|
$294.62
|
$349.61
|
-1.752%
|
|
8/16/19
|
$50.00
|
$400.00
|
$385.57
|
0.173124
|
1.359757
|
$288.81
|
$392.71
|
-1.818%
|
|
8/30/19
|
$0.00
|
$400.00
|
$389.89
|
0.000000
|
1.359757
|
$292.45
|
$397.66
|
-1.954%
|
Forgot
to transfer $50
|
9/3/19
|
$50.00
|
$450.00
|
$439.89
|
0.171945
|
1.531702
|
$290.74
|
$445.33
|
-1.221%
|
|
9/12/19
|
$50.00
|
$500.00
|
$514.39
|
0.165915
|
1.697617
|
$301.36
|
$511.59
|
0.547%
|
|
9/20/19
|
$0.00
|
$500.00
|
$512.13
|
0.000000
|
1.697617
|
$298.28
|
$506.37
|
1.138%
|
SPY
went ex-dividend of $1.384 per share or $2.35. This will be reinvested on
10/31/19 when the dividend is paid out
|
9/27/19
|
$50.00
|
$550.00
|
$563.02
|
0.169262
|
1.866879
|
$295.40
|
$551.48
|
2.093%
|
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