Thanks to dividends paid in May and June, my investing challenge portfolio has an extra share.
June is over, and that means it’s time for another update for my investing challenge portfolio. If you’ve been following the challenge, you know that my portfolio is all about the dividends. Every single asset in my portfolio pays dividends. I did end up selling ATT and replacing it with two different funds, one of them a commodity fund. However, I made it a point to make sure that both of those funds also pay dividends.
A dividend portfolio is great, because you end up receiving profit-sharing, in the form of extra payments. You can then reinvest these dividends for great effect. While some brokerages, like Betterment, will automatically reinvest your dividends, I don’t have that luxury with Kapitall, which is where I am keeping the investing challenge portfolio.
Not only that, but the “free trades” I have are actually manually credited to me after the fact. So I pay the transaction fee, and then I’m essentially refunded. It’s a bit frustrating because I can’t add new money to my investing challenge portfolio to make up for this reality. (I guess I should complain too much; not everyone has free trades to work with, and some of them have had their portfolios negatively impacted as a result.)
Anyway, my dividend payments at the end of May and June finally pushed me over the top, to the point where I had enough cash sitting idly in my ?to cover the cost of another share plus the transaction fee. I bought the additional share on July 1, so it’s not included in my June numbers.
You can see, from the snapshot above, that I’ve been receiving dividends. Just between the end of March and the end of June, that’s $10.55 in dividends. And, of course, I had other dividends at the beginning of the year as well. I like that some of the dividends are monthly, which allows me to earn money a little faster.
At any rate, I was able to accumulate enough in dividends to buy another share of LVL, which is a high-income global equity fund. And, of course, having another share of LVL will also help my challenge portfolio gain in value, assuming LVL does reasonably well.
The unfortunate truth of the matter for my portfolio on June 30 was that my portfolio saw losses that day. Additionally, that represented a loss between May and June. At the end of May, my portfolio had $1,113.90, and at the end of June, the total value of my portfolio was $1,112.74.
However, even though this represents my first month-over-month loss in the value of my portfolio, it’s still higher overall. The value has increased more than $112 in the first six months, which isn’t bad. Of course, my boring approach to investing doesn’t have me at the front of the pack. However, I’m not too bad off. In the top few in terms of results in this investing challenge.
But what really matters is that my dividend portfolio is off to a good start. I think when this investing challenge ends, I might put more money into this account, in an attempt to truly try to build this account into a bone fide income portfolio (a process that I expect to take seven to 10 years). I also think that it’s important to be ready to take advantage of investing opportunities when they come up, so having a portfolio like that would make sense for me.