Dividends, Reserve Capital … and $5,000 from $500 | SHARPE INCOME

Posted on Jul 3 2017 - 2:11pm 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 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: $4,009.29
Total Sharpe Income Project Return:  + 10.31 %
Total Sharpe Income YTD Return: + 2.86 %
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: + 2.50 %
S&P 500 Index YTD Return: + 8.24 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %


First of all, note that we were paid a dividend on Union Pacific (UNP) last week.  This has been recorded on the spreadsheet.  Second?  We’re going to have a repeat of last week.

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: $516.50
Reserve Cash: $100.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $0.00
Cash for Reserve Capital: $100.00

The next stop?  $5,000.00 with better yield … 

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.

The end of the month PDF that summarizes the performance of this project for June can be found at this link.

We continue the Sharpe Income project with this next entry.

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