As I'm taking the time to write this post, it's nearly the middle of October!
We just experienced our first overnight freeze here in Central Wisconsin a few nights ago, which means that fall is in full effect and our first snowfall is likely just a few weeks ago.
With that side note out of the way, I will be delving into the intent of this post, which is to discuss my dividend stock purchases during September.
Starting with the activity in my retirement account, I deployed $317.43 in capital between my 7% contribution, my employer's 3% contribution, and the $63.66 in dividends during the month that were reinvested.
Net of the $11.44 in sales charges, I deployed $305.99 in capital to my Capital Income Builder (CAIBX) position, which boosted my share count from 125.273 heading into September to 130.445 going into October.
This increased my annual forward dividends by $11.07, which equates to a net yield of 3.62%.
Moving to my Robinhood account, my margin fell from $1,683.91 at the beginning of September to $1,619.88 at the end of September as a result of the net dividends of $64.03 that I received in my Robinhood account during the month.
This reduction in my margin helped to pad my annual forward dividends by $3.20 when factoring in the 5% interest rate on Robinhood margin over the first $1,000.
I deployed $370.02 in capital (including dividend reinvestment) during September and added $14.27 in annual forward dividend income as a result of my capital deployment, which works out to an average weighted yield of 3.86%.
When also including the dividend announcements during the month of September for my portfolio, my annual forward dividend income was up just over $17 and I came into October just over 1% away from my all-time high annual forward dividend income of $1,252.
I am continuing to make significant progress in deleveraging my Robinhood margin and anticipate that I will have all margin repaid by the end of October (aside from the $1,000 of interest free margin). My credit card debt was less than $2,000 heading into October (most of which is interest free until next March), which means that I will be able to resume my $1,500/month capital deployment schedule starting in November.
Discussion:
How was your September in terms of capital deployment?
Were you fortunate enough to not have endured a dividend cut in your portfolio's dividend announcements during September?
I appreciate your readership and look forward to replying to your comments in the comment section below!
Kody,
ReplyDeleteGreat stuff and glad to see that you're back up to your previous forward dividend mark. Luckily no cuts for me in September and between purchases, reinvestment and raises our forward dividend income climbed $88 in September which was very much welcomed.
Regarding the interest free margin with Robinhood. I've been tempted to start an account at RH as a way to throw my "loose change" at investments. Just doing a cursory look the free margin is only if you're paying the $5/mo so it's really a 6% interest correct? Or is there another way to skirt around that and not have to pay the $5 monthly fee?
Rob,
ReplyDeleteThanks for stopping by and commenting.
Congrats on adding $88 of annual forward dividends last month.
As far as Robinhood is concerned, there is no way around the $5/month membership fee for Robinhood Gold to access the margin.
Factoring in a 4% yield on that first $1,000 of interest free margin that's included in Robinhood Gold membership, I have access to Morningstar reports within the app for about $20/year, which seems like a pretty decent value for the amount of detail in their reports.