Collecting Dividends on Cruise Control | SHARPE INCOME !!

Posted on Jul 10 2017 - 11:12am 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 only $500. All in an effort to help out the small retail investor who doesn’t have a lot of money, understand the importance of growing an income account, as opposed to a trading account. Remember that these numbers are computed off of Friday’s close and are updated each week. It’s live … as it happens …

Total Sharpe Income Balance: $4,031.29
Total Sharpe Income Project Return 2016 Forward:  +10.87%
Total Sharpe Income YTD Return: + 3.43 %
Sharpe Income Total Yield: + 4.55 %
Sharpe Income YTD Paid Yield on Cost: + 1.56 %
Total Sharpe Income YTD Maximum Draw-down: – 1.34 %
iShares Barclay’s IEF YTD Return: + 1.80 %
S&P 500 Index YTD Return: + 8.32 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %


Dividends were paid for SHY and TLT today, and this has been counted in on the ‘trading segment’ of the project.  Remember that dividends paid in the ‘trading segment’ are not counted as any part of the Income yield of the project.  It’s simply padding for the trades we have on at the moment (those trades being long 5 SHY, long 4 QQQ, long 1 IVV and long 3 TLT)

We are ‘shoring up’ our ‘reserve cash’ as of late, and therefore we are going to place 100% of this weeks ‘capital deposit’ in the category for ‘Reserve Cash’.  We are not segmenting the capital to cash for ‘Income Asset’ purchases in the future.  We are not segmenting it to cash for future ‘Capital Gains’ Trades.  We are simply sticking that capital in ‘Reserve Cash’ … where it will stay.

Thus, the cash is reserved thusly …

Total Cash: $723.72
Income Assets Cash: $107.22
Capital Gains Cash: $517.60
Reserve Cash: $125.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $0.00
Cash for Reserve Capital: $125.00

As we said sometime ago, the project is now sort of on ‘cruise control’.  We are at a point where we are collecting our dividends from the ‘Income Assets‘, and in the ‘Trading Segment’ … simply allowing the trade to work out over time.  I will review the trades we have on in that segment at the end of this month.

07-10-17-sharpe-income-project-returns

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.  

The supplemental information on the forums of the Short-Term Trading Course describes the process behind the Sharpe Income project, and remember that we are currently running a promotion on the short-term courses.

We continue the Sharpe Income project with this next entry.

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