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. 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: $3,448.23
Total Sharpe Income YTD Return: + 2.49 %
Sharpe Income YTD Paid Yield on Cost: + 0.00 %
Total Sharpe Income YTD Maximum Draw-down: – 0.00 %
iShares Barclay’s IEF Return: – 0.10 %
S&P 500 Index YTD Return: + 2.49 %
S&P 500 Index YTD Maximum Draw-down: – 0.25 %
No dividends were paid last week. 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. Of that cash, 85% of the capital deposit was placed as reserved for a future deposit towards the ‘capital gains’ strategy. 15% of the capital deposit is placed towards reservations for the purchase of more income assets. Thus, the cash is reserved thusly …
Total Cash: $104.74
Income Assets Cash: $39.82
$39.82 Reserved for future MDT purchase
Remaining Cash “Dry Powder” after Reservations for Income Purchases: $0.00
Capital Gains Cash: $14.92
Reserve Cash: $50.00
Cash for Income Assets: $3.75
Cash for Capital Gains Allocation: $21.25
Cash for Tier Capital: $25.00
Within the next few days we should have the PCY dividend post as that has been declared. I’m not sure if the PFF dividend will be paid in January. Many times, such ETF’s skip paying the dividend in the first month of the year. However, we will have the TLT and SHY dividends paid in the beginning of February.
We are again hitting new highs, for both the project as a whole, as well as the ‘Income Assets’ themselves. Just a lot of … green. As in … money.
Do not forget, that you can discover how we find such income stocks that are held for years at a time, in Sharpe Trade’s Valuation Investing Course. We discuss this particular project, more in-depth via Sharpe Trade’s Short-Term Trading Course.
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.