On the second or third Saturday of the month I update the Pocket Change Portfolio (PCP). The table below reconciles the PCP from beginning of period to end of period for November 2008, Year-To-Date (2008) and Life-To-Date. Obviously, Year-To-Date and Life-To-Date will be the same for the remainder of 2008. The Portfolio Returns line provides the calculated return for the three displayed periods. Description Nov-2008 Year-To-Date Life-To-Date Beg. Portfolio Value 2,246.47 - - Online Cash Receipts 515.44 2,870.81 2,870.81 Online Expenses - (20.00) (20.00) Gross Profit 515.44 2,850.81 2,850.81 Dividend Income - - - Interest Income 0.81 4.41 4.41 Subtotal 516.25 2,855.22 2,855.22 Gain/(Loss) 2.66 (89.84) (89.84) Ending Portfolio Value 2,765.38 2,765.38 2,765.38 Portfolio Returns 0.1% (4.9%) (4.9%)
Online Cash Receipts are the collected earnings from my online endeavors. Most of which is advertising on the my various blogs. The $20 Online Expenses relate to registering 2 domains (dividends4life.com and thediv-net.com). Since I host on Blogger, this line should see minimal activity. The Dividends line is for dividends earned in the PCP. The Interest Income line is interest earned on cash balances in an ING account I set up for the PCP. The Gain/(Loss) line is for market changes to the PCP (realized and unrealized).
During the month of November I purchased 22 shares of KO at $46.27/share and charged the portfolio a commission of $4.50. The KO stock will provide me $33.44 in annual income, bringing the PCP's total annual dividend income to $100.64. Now that the portfolio has exceed $2,500, it is eligible for 10 free trades a month.
With over $700 in cash, this will allow me to purchase my third stock in the PCP during the month of January. It is my goal to have sufficient earnings to purchase a stock at least once a quarter.
My PCP holdings are always available by selecting the Holdings option from the menu in the header. The next PCP update will be in early January.
(Photo: sanja gjenero)
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Pocket Change Portfolio - November 2008
Posted by D4L | Saturday, December 13, 2008 | pcp, progress | 6 comments »________________________________________________________________
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D4L,
Interesting how you track your income separately. Since that is a small amount of money that you are keeping on a separate account, why not invest on like a dividend generating ETF like VYM
Bill: The PCP is actually included in my regular portfolio. I buy its shares along with my regular monthly purchases to save commissions. I just track it separately for illustration purposes.
I hold VYM, but have been very disappointed with its performance. It has underperformed my income stocks by more than 10 percentage points.
Best Wishes,
D4L
I'm considering adding the amazon referral program to my blog, has it worked well for you?
The Intelligent Investor: Amazon has not been effective for me. I have minimized its use.
Best Wishes,
D4L
I am very interested in investing. For most of my life I had other people invest for me and lost. I started doing it myself in a small brokerage account. How do I set up a website and learn to blog?
AK
AK: Dividends4Life is run on Blogger (www.blogger.com) it is easy to use and free.
Best Wishes,
D4L