SHARPE INCOME … A Slew of Dividends

Posted on Dec 28 2015 - 12:44pm 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.


First, our weekly house-keeping …

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 and published each week.  Remember that the numbers are computed off of Friday’s close … 

Sharpe Income Balance:  $1,748.82
Sharpe Income YTD Return: – 6.73 %
Sharpe Income YTD Yield:  + 1.45 %
Sharpe Income Maximum Draw-down: – 13.05 %
IEF Benchmark Return: + 1.90 %
S&P 500 Index Return: + 0.10 %
Berkshire Hathaway Return (BRK.A): – 11.00 %

For the purposes of this particular project, this week I once again moved 92% of this weeks capital contribution towards the category reserved for purchasing capital gains assets.  The remaining 8% of the capital contribution was placed towards the cash we have reserved to in the form of ‘dry powder’.  Simply put, cash we hold that we can place anywhere, at any time for the purposes of the project.

Sharpe-income-dividend-passive-investing-project-cash-allocations-12_28_15

Now that we are done with the maintenance of the account for this week …

I know I had mentioned a possible purchase in PCY.  However, PCY first needs to clear $27.43 for me to be interested in a possible purchase …

Emerging Markets Sovereign Debt ETF (PCY)
4 Hour Chart
(tradingview.com)

emerging-markets-pcy-4-hour-chart  

If that does not happen?

This may possibly be the last Sharpe Income project entry for 2015.  Friday is January 1st and thus, we have another abbreviated week of trading.  Volumes will be light.

However as a send-off to 2015, the project will receive a slew of dividends before 2016.  

Remember that for the purposes of counting the yield received by the project, we do not count any dividends received from our ‘Capital Gains’ assets (IVV, JNK, PCY, QQQ, TLT) as ‘project yield’.  Dividends received from the capital gains assets will simply be counted towards the gains for that particular strategy.

Sharpe Income Project Picture beginning Strategy

Regardless, we will receive dividends from …

Union Pacific (UNP) on December 30, 2015

PCY on December 30, 2015

QQQ on December 31, 2015

IVV on December 31, 2015

We will compute our final 2015 results after the last trading day of the year.

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 57 can be found here (numbers computed off of Friday’s close) ….

Leave A Response