Tuesday, August 28, 2012

First Dividend Received (SNH)

Last Friday we received the first dividend payment (SNH) from the first batch of securities we purchased back in July.  It caught me completely by surprise.  Although I had been anticipating it for several weeks, and had marked it on my various spreadsheets and calendars, I got distracted by travel to a family gathering this weekend and didn't even notice it in my account history until Sunday evening.

So now we have an additional $41.80 in our account.  I feel like framing it and hanging it on the wall, much like the first dollar bill mounted above the cash register in a small business.

For now I've chosen not to automatically reinvest our dividends, mainly because I like to micromanage our finances.  I will happily put that cash to use in some new investment in the near future.  I may ultimately adopt a hybrid approach, allowing some companies to automatically reinvest while others do not.  For now I'll keep the controls on manual while I get a feel for things.

Another dividend is scheduled to pay out this Friday (CLF).  I'll be ready for that one.  Several others will follow in September, which looks to be a big month for dividends from the securities we own.  I can't wait!

3 comments:

  1. This looks like it will be an interesting blog. I wasn't around to see you guys pay off your house but it is quite impressive. I like the high yield/deep value approach you're using. Keep a watchful eye on the super high yielders like PBI.

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  2. Thanks for the feedback. I do recognize the risk with PBI, but I hope to offset each riskier PBI-type holding with one or more less risky MCD-type holdings.

    I was impressed by your own blog...good info there, and some nice ideas on your watch list.

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  3. I agree with CI to be careful with the higher yielders. The higher reward seems to always carry some sort of higher risk. Diversifying and increasing the number of holdings (up to a point - overdoing it gets too hard to manage) allows you to protect yourself from the shortcomings of any one holding. Personally I've decided that I like having a large number of "average" yielders, and then a few outliers on the high and low ends. The low yielders are there usually because I've convinced myself they have appreciation potential. And keeping amount of high yielders low prevents me from falling into the trap of becoming dependent on them, and then having something go wrong and their dividends cut - this has happened to me a couple of times now, but the damage is less than it could have been if I had thrown caution to the wind and loaded up on them.

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