On the second Saturday of the month I will update the Pocket Change Portfolio (PCP). The table below reconciles from beginning of period to end of period the PCP for September 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 the year. The Portfolio Returns line provides the calculated return for the three displayed periods. Description Sep-2008 Year-To-Date Life-To-Date Beg. Portfolio Value 1,120.27 - - Online Cash Receipts 469.33 1,607.32 1,607.32 Online Expenses - (20.00) (20.00) Gross Profit 469.33 1,587.32 1,587.32 Dividends - - - Interest Income 0.21 2.49 2.49 Subtotal 469.54 1,589.81 1,589.81 Gain/(Loss) (83.10) (83.10) (83.10) Ending Portfolio Value 1,506.71 1,506.71 1,506.71 Portfolio Returns (5.2%) 0.00% 0.00%
Online Cash Receipts relates to all earnings generated online. 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).
As previously mentioned, during the month of September I purchased 20 shares of BP at $54.10/share and charged the portfolio a commission of $4.50. The BP stock will provide me $69.60 in annual income.
It is my goal to have sufficient earnings to purchase a stock in the last month of each quarter. I currently have $503.31 in cash, so my goal of purchasing an additional stock in December is obtainable.
My PCP holdings are always available by selecting the Holdings option from the menu in the header.
(Photo: sanja gjenero)
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It will be interesting to note the exponential nature of this "portfolio" as earnings ramp up, dividends increase, and the compounding begins to take place.
Tyler: You are absolutely correct. I think it will be an excellent demonstration of what can happen when you put back a little each month for investing.
Best Wishes,
D4L
I would also like to see the progress of this PCP portfolio. I have one comment however - as the portfolio exceeds $2,500 why can't you simply stop charging a commission and start dollar cost averaging into several positions.
I think that you could select up to 10 quality dividend stocks and then buy equal dollar amount in each of them every other day each month..
DGI: I do plan to stop charging a commision after the PCP reaches $2,500. However, since it is a real dollar portfolio that is piggybacking on my Scottrade accout it would be cost prohibitive to execute 10 trades a month. I have toyed with the idea of buying each month after reaching the $2,500 level. I am not sure I want to deal with the administration of that. I still have some time to make that decision.
Best Wishes,
D4L
D4L,
If you don't have a Zecco account, I would gladly help you in opening one. 10 free trades/month are almost enough. Just e-mail me at my e-mail :-)