January 2017: Dividend Account Activity

In this post, I will provide a summary of all account activity in the "Exceptional Fund" for January 2017.

As you've read, I re-established the fund after borrowing against it to pay for tuition for a graduate degree.

I am "starting over" with an approximate $10,000 initial account balance, which I will work to grow over the course of time.

At the beginning of January, I began this online adventure with an account balance of $10,832.  I am concerned less with the overall account balance at any given point in time than the dividend income stream that this fund will provide.

However, the fund balance is a qualitative data point and one measure of account value.

For me, the key data point is the monthly income generated by owning shares of high quality, dividend growth stocks.

This year, the data and dividends collected will serve as a baseline to measure growth and success.

This month, the fund collected $27.46 in dividend income.

It will be a full year before I can compare January vs. January, but in the meantime I can look at quarter over quarter, and even month over month, although that number is not worth much right now as a quality data point.

Throughout the month I was able to invest $3030 in new capital to the account.

This number is generally much higher than I routinely anticipate to be able to invest.  It represents extra income due to a partial coaching stipend paid to me and a gift to the fund by a family member.

However, it does put me at 30% of one of my annual goals, the investment of $10,000 of new capital into the fund.

As of February 1, the fund had a balance of $13,956.34, a 28.84% increase since January 1st, primarily as a result of new capital.

This feels like a huge head start and gives me a boost of confidence as I begin the year.

With those funds, I made two purchases:
  • 13 shares of CVS
  • 39 shares of WPC
During the month, dividend reinvestment through the FRIP program at Scottrade resulted in the purchase of one share of KO.

As of this writing, the estimated annual dividend income of this fund is approximately $554.

All things considered, I consider this first month of the fund to have been a very successful one, as I began positions in two new companies, and was able to deploy a sizable amount of new capital toward getting the dividend snowball rolling.

Over time, the income stream provided by dividend income will allow me to offset the costs of medical care, therapies, and routine expenses that come with raising a child on the autism spectrum.

While it is impossible to predict the many turns that the road ahead will take, I am setting a foundation to be able to have the ability to financially navigate the course forward.  

I hope your January was a success, and I look forward to your comments.  

Disclosure: Long CVS, KO, WPC


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