SHARPE INCOME … The Project’s ‘Grind’

Posted on Apr 4 2016 - 12:46pm by Dan

The original Sharpe Income post that explains this project can be found here.

The Sharpe Income category be found by clicking on that red ‘Sharpe Income’ tag next to this post title, or by clicking here.

We continue the discussion from the last entry.


We began this project with $500. All in an effort to help out the small retail investor understand the importance of growing an income account, as opposed to a trading account. The following numbers are taken from our PDF that is attached below.   Remember that the numbers are computed off of Friday’s close …

Total Sharpe Income Balance: $2,099.22
Total Sharpe Income YTD Return: – 0.02 %
Sharpe Income YTD Yield: + 0.44 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 4.80 %
S&P 500 Index YTD Return: + 1.41 %

House-Keeping / Maintenance
We were paid our Union Pacific (UNP) dividend.  This has been recorded in on the spreadsheet, and our yield on cost for that asset is now 1.19%.  Inception to date, the yield on cost for all of our income producing assets is 1.66%.

Turning towards our ‘Capital Gains‘ strategy?  We were not paid the PCY dividend at the end of the month.  By the time we had purchased PCY, we were past the record-date to receive the March dividend.  So we’ll have to wait until the end of April to see the PCY dividend show up.  However, we were paid the IVV dividend, and this has been noted on the spreadsheet. 

This weeks entire capital deposit towards purchasing ‘Income Assets’, namely, Medtronic (MDT).   So our cash on hand is reserved thusly

sharpe-trade-sharpe-income-project-best-dividend-strategy-capital-allocations-04-04-16

Moving Forward
At the present time, we are not within the ‘glamorous’ portion of building an account, that pays a passive dividend.

We are ‘grinding’.

It does not matter if you are working out at the gym, or if you are engaged with short-term trading, or building an account whose eventual goal is to pay you passive dividend income.  In order to see the good effects of discipline, process and  a strategy, you have to ‘grind it out’, and not give up.

We are in such a time-period right now with this project.  So we will continue to add capital each week.  Continue to monitor the progress of each piece of the account.  Continue to purchase income producing assets, when the time is right.

Briefly put, we will grind it out.

The link to the Google Drive Spreadsheet that you can view, that we will edit, build upon and refer to over time can be found at this link.

We continue the Sharpe Income project with this next entry.

The Sharpe Income PDF breakdown for Week 71 can be found here (numbers computed off of Friday’s close) …

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