SHARPE INCOME … Working on the ‘Framing’

Posted on Sep 26 2016 - 3:36pm 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 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: $2,805.93
Total Sharpe Income YTD Return: + 3.78 %
Sharpe Income YTD Paid Yield on Cost: + 2.41 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 7.00 %
S&P 500 Index YTD Return: + 5.08 %
S&P 500 Index YTD Maximum Draw-down: – 11.24 %


As you will note on the PDF … we have placed this weeks ‘capital deposit’ in the category reserved as “dry powder”.  Cash that we simply have ‘on hand’ and can move about as we wish.  And thus, our capital on hand for each category looks a little something like this …

09-26-16-sharpe-trade-free-dividend-project-cash-allocations

In past entries we have used the illustration of ‘constructing a house’ in reference to building this ‘passive dividend’ project.  In November of 2015, we stated that we had ‘laid the foundation’.  In March of 2016, we stated that we were still working on ‘laying the ‘sill plate’.

To continue the above metaphor, I would say here at the end of September of 2016, the ‘sill plate’ is complete, and we can now begin to work on ‘building the frame’.  Notice I did not say that the ‘framing’ is complete.  But simply that we can begin to work, on ‘building the frame’ of our passive dividend project here.

We are at about ‘that stage’.

We do not yet have the ‘protective walls’, nor a ‘roof’.  In other words, we can’t start to take a passive dividend income from the project to pay ourselves.

But we will get there.

We have begun to see good risk-adjusted metrics.  Knowing the process I’m using here, I expect that this will continue as time passes.  That’s not a ‘prediction’.  That’s understanding the process that I am using.

And so we will continue to contribute capital each week in various categories.  As we have already demonstrated with this project, when we make a move, we will annouce that.  We thus continue to work on the ‘construction’ of this project.  To build the ‘frame’, as it were, over time.  

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

3 Comments so far. Feel free to join this conversation.

  1. Anonymous September 26, 2016 at 3:49 pm - Reply

    Microsoft recently announced a dividend increase to $0.39 per share quarterly.

    • Dan September 27, 2016 at 8:44 am - Reply

      Naice. 🙂

      Always nice to receive a raise.

      🙂

      D

  2. Christopher September 27, 2016 at 9:49 am - Reply

    Loving that AXP dividend increase as well! 10.3%!

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