10/12/19

$50 Per Paycheck Dividend Portfolio Update 10/11/19


With an additional $50 automatically sent to M1 Finance, $600 has been invested in the $50 per paycheck dividend portfolio so far.

As of market close on 10/11/19, the account value was $610.45, which included $3.44 in cash that M1's algorithms were unable to invest. The same $600 invested in the Standard and Poor's 500 index, as measured by the Vanguard ETF VOO (yes, I've changed the benchmark from SPY), would be worth $605.48.





Since inception in late June 2019, the portfolio has received $3.75 in dividends. The latest batch came from GlaxoSmithKline, Community Bank System, Illinois Tool Works, China Mobile, Johnson Controls, Kennedy-Wilson Holdings, South Jersey Industries, Prosperity Bancshares, MDU Resources Group, Coca-Cola, Brown Forman, Wyndham Destinations, and Public Service Enterprise Group.



Per M1, the portfolio's dividend yield is 3.648%. I haven't found a good way to share the portfolio's holdings, but you can explore with this link.


If you're looking at the screenshot above and are wondering what the negative $0.01 dividend is from China Mobile, that's a foreign tax payment. If you invest in foreign dividend paying stocks, be sure to check if they have taxes automatically taken out. If they do, you may want to lower the market yield by the tax rate to get a better idea of what your actual dividend rate will be from the stock.

If you invest in individual foreign stocks that have automatic withholdings from their dividends, you may consider holding them in a regular, taxable account instead of an IRA. That's because when you file your taxes, you can usually deduct or get a credit for the foreign tax paid. Paying the foreign tax in your IRA doesn't give you that option. (You may also consider the price appreciation potential of the foreign stock. If you ever sell it at a profit, you won't pay any capital gains taxes in an IRA, but you will in a taxable account. Investing is always full of tradeoffs.)

Two weeks ago I considered changing the portfolio benchmark from the State Street SPY ETF to Vanguard's VOO because of the long lag between SPY going ex-dividend and actually paying out the dividend. Since I had some time, I've switched the benchmark to VOO for easier future recordkeeping.

Date
Additional Investment
Running Total Investment
Dividend Portfolio Account Value
Additional Benchmark VOO Shares
Running Total Benchmark VOO Shares
VOO Closing Share Price
Benchmark VOO Value
Dividend Portfolio VS Benchmark
Comment
6/24/19
$200.00
$200.00
$200.00
0.737844
0.737844
$271.06
$200.00
0.000%

7/2/19
$0.00
$200.00
$200.00
0.003756
0.741600
$272.23
$201.89
-0.934%
$1.0226 dividend received and reinvested into VOO
7/3/19
$50.00
$250.00
$252.22
0.182269
0.923869
$274.32
$253.44
-0.480%

7/18/19
$50.00
$300.00
$299.10
0.182202
1.106071
$274.42
$303.53
-1.459%

8/2/19
$50.00
$350.00
$343.48
0.186005
1.292076
$268.81
$347.32
-1.106%

8/16/19
$50.00
$400.00
$385.57
0.188523
1.480599
$265.22
$392.68
-1.812%

8/30/19
$0.00
$400.00
$389.89
0.000000
1.480599
$268.60
$397.69
-1.961%
Forgot to transfer $50
9/3/19
$50.00
$450.00
$439.89
0.187189
1.667788
$267.11
$445.48
-1.255%

9/12/19
$50.00
$500.00
$514.39
0.180734
1.848522
$276.65
$511.39
0.586%

9/27/19
$50.00
$550.00
$563.02
0.180989
2.029511
$276.26
$560.67
0.419%

10/1/19
$0.00
$550.00
$548.87
0.009807
2.039318
$269.32
$549.23
-0.065%
$2.6412 dividend received and reinvested into VOO
10/10/19
$50.00
$600.00
$610.45
0.185653
2.224970
$272.13
$605.48
0.821%



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