After the hectic July, things are calmer. In July, I cleared out companies that ended their dividend and sold a large holding that paid a huge dividend, but is clearly not sustainable.
I replaced them with solid dividend growers and companies that are more recession-proof. At least somewhat recession-proofish, if that is a word...
Consistently buying shares in companies that pay a healthy dividend AND grows them on a regular basis will hopefully create an income source that allows freedom from having to rely on working until I die...
In early August, I focused on ASB, which kept their hefty dividend (5.35%) and has a very pleasing payout ratio of only 33.96%. That gives them room to grow and take a hit in the upcoming quarter without having to ditch the dividend.
The other one I am excited about is opening a position with VYM. Thanks to this eye opening article by Lanny over at Dividend Diplomats, I am starting to look at exchange traded funds (ETFs)
An ETF is like a mutual fund, but is sold on the stock exchange like a normal stock, but is a collection of companies like a mutual fund. And the expense ratios are much lowerthan a typical mutual fund.
VYM (Vanguard High Dividend Yield Fund) has solid upper 3% dividend is a nice safe place to put money into when bargains are hard to find. It consists of 424 companies and is weighted towards some solid dividend aristocrats. The top holdings are Johnson & Johnson, Proctor & Gamble, JPMorgan Chase, Verizon, Intel, and others that I already own.
Why have to choose between these awesome companies when this ETF has all of them in it! BAM!
I plan on buying at least one share of VYM per week from here on. So I have 2 shares for far, soon to be many.
Here's the breakdown.
Overall, I invested $985.30 to earn an annual $42.67 in dividends. That's a 4.33% rate. And will only get larger as time moves on.
Cheers!
I replaced them with solid dividend growers and companies that are more recession-proof. At least somewhat recession-proofish, if that is a word...
Consistently buying shares in companies that pay a healthy dividend AND grows them on a regular basis will hopefully create an income source that allows freedom from having to rely on working until I die...
In early August, I focused on ASB, which kept their hefty dividend (5.35%) and has a very pleasing payout ratio of only 33.96%. That gives them room to grow and take a hit in the upcoming quarter without having to ditch the dividend.
The other one I am excited about is opening a position with VYM. Thanks to this eye opening article by Lanny over at Dividend Diplomats, I am starting to look at exchange traded funds (ETFs)
An ETF is like a mutual fund, but is sold on the stock exchange like a normal stock, but is a collection of companies like a mutual fund. And the expense ratios are much lowerthan a typical mutual fund.
VYM (Vanguard High Dividend Yield Fund) has solid upper 3% dividend is a nice safe place to put money into when bargains are hard to find. It consists of 424 companies and is weighted towards some solid dividend aristocrats. The top holdings are Johnson & Johnson, Proctor & Gamble, JPMorgan Chase, Verizon, Intel, and others that I already own.
Why have to choose between these awesome companies when this ETF has all of them in it! BAM!
I plan on buying at least one share of VYM per week from here on. So I have 2 shares for far, soon to be many.
Here's the breakdown.
Ticker
|
Date
|
QTY
|
Price
|
Total
|
DIV INC / Yr
|
YIELD
|
AMGN
|
8/3/20
|
1
|
$248.0395
|
$248.04
|
$6.40
|
2.58%
|
MCBC
|
8/3/20
|
7
|
$7.1484
|
$50.04
|
$2.24
|
4.48%
|
ASB
|
8/14/20
|
21
|
$14.2350
|
$298.94
|
$15.12
|
5.06%
|
HBAN
|
8/17/20
|
8
|
$9.7970
|
$78.38
|
$4.80
|
6.12%
|
ASB
|
8/18/20
|
10
|
$13.6295
|
$136.30
|
$7.20
|
5.28%
|
AMNF
|
8/18/20
|
3
|
$2.0700
|
$6.42
|
$0.21
|
3.27%
|
VYM
|
8/26/20
|
1
|
$83.0400
|
$83.04
|
$3.35
|
4.03%
|
VYM
|
8/28/20
|
1
|
$84.1350
|
$84.14
|
$3.35
|
3.98%
|
TOTALS
|
$985.30
|
$42.67
|
4.33%
|
Overall, I invested $985.30 to earn an annual $42.67 in dividends. That's a 4.33% rate. And will only get larger as time moves on.
Cheers!
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