SHARPE INCOME … “Again”

Posted on Jul 25 2016 - 2:18pm by Sharpe Trade

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 $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: $2,590.65
Total Sharpe Income YTD Return: + 4.06 %
Sharpe Income YTD Paid Yield on Cost: + 2.17 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 7.10 %
S&P 500 Index YTD Return: + 6.40 %

House-Keeping / Maintenance
This week the entire capital deposit is placed in our “dry powder” category.  Simply put, capital we keep on hand that we can use in any aspect of the project in the future.   So our cash on hand is reserved thusly

07-25-16-sharpe-income-cash-allocations-for-passive-dividend-income

Moving Forward
We have increased the amount of income we receive from the income assets with last weeks purchase of Microsoft (MSFT).  Naturally, the cash for this project is somewhat depleted. 

So we begin again.  Those of you who have followed this project from the beginning will  understand the ‘cycle’.  

We save up the regular capital deposits each and every week.

We receive our dividend payments.

We keep track of the performance of the account, and review it repeatedly.

We keep track of our embedded capital gains strategy.

I review the performance of the underlying instruments.

When the time is right, we increase our monthly income, by purchasing more dividend  paying income assets.

You’ve thus witnessed what you will continue to witness for the life of this project in that we repeat the above cycle again and again and again and again.

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

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

  1. Anonymous July 25, 2016 at 2:49 pm - Reply

    Dan,

    Your PDF says Microsoft – says $900 for a starting position instead approximately $300.

    And the 3 sheet of spreadsheet, the second table shows Microsoft as cost basis of 0.00

    • Dan July 25, 2016 at 3:11 pm - Reply

      Thanks. Let me correct that right away …

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