The original Sharpe Income post 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.
A couple of weeks ago, we mentioned that we had received an 18% ‘increase in income’ so to speak. IBM enjoyed a very nice, low, dividend payout ratio. And sure enough, they raised their dividend.
And as of last week, we find out that we are to receive yet another ‘raise’ in income. American Express (AXP) is increasing their dividend by 11.54%. But at the same time, the dividend payout ratio for American Express (AXP) is still below 20%!
Not bad. Two new raises and the project isn’t even 35 weeks old yet. But remember, the dividend payout ratio, is not the ‘one panacea metric’ to use and look at, because no such metric exists, as we discuss in this weeks video entry ...
‘Sharpe Income’ Actions This Week
For the purpose of this project, we now have $239.30 available, that is ‘segmented’ into a few different categories. Here is what we are concentrating on this week …
Capital Gains Strategy: Of the capital contribution this week, 24% of the contribution was placed towards this category. We have stated for some time that we wish to ‘beef up’ this section of the project so we can make our initial purchase into the strategy.
Of course, before we can do that, we have to make sure there is enough cash to make an ‘income purchase’ if the opportunity arises, so ….
Remaining Cash after Reservations: This is the section of our cash that we will use for the usual purchases. As you know, at least at this stage in the game … our approximate size of a purchase for the project runs about $300.00. This week, we placed $19 out of our $25.00 weekly deposit (or 76%) into this category .
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.