March 2023

Rules:

1) Transfer $50 per month to broker on the 8th of each month.

2) Purchase Dividend Aristorcrat stock on the 8th of each month one month ahead of dividend own date

3) If cannot purchase with $50, roll over cash into next month.  Place stock on HOLD list

4) If a month is reached where we already have a dividend payout from a stock, start at top of HOLD list and work way throgh list to see if any can be purchased.

5) Once income is being generated each month, repeat, evaluating performance of existing stocks and buying or selling as necessary.

Note:  Each stock should have a sell price where if the stock falls to that we will sell.  I honestly don't know how to make that decision and I would like to have a strategy for each stock.  For now, I will set an "alarm bell" at 20% of purchase price and work on understanding more.  

Goal: Buy 1 share of S&P 500 Dividend Aristocrats (SPDAUDP), currently priced at $1,606.  

2023_03_27 Having made the rules, I promptly broke them last month and purchased HNDL, an ETF which seeks to return 7% per year to investors.  I also have some cash laying around in the account and added $50 to make my total invetment $100 for this month.  Having purchased the stock, a week later I received the dividend payout -- a full eleven cents.  This is esentially a rebate -- but you know what -- it still did what I wanted it to which is to get excited seeing that dividend payout email.  

I also realized that the way I started this project I am a month behind.  I need to be looking NOW at not April but May.  Stocks tend to run up slightly before dividend payout as the dividend then becomes essentially a rebate for buying the stock.

But not to worry, because for April I have chosen Kimberly Clark as my investment. 3.5% annual yield and the dividend is paid out quarterly.   It's currently trading at around $130 -- well above my little $50 a month investment.  So to get back on track, I will just make KMB (Kimberly Clark) my first hold stock and take a look at May for my April purchase.  

So what do we have coming up May?  Well, my eye hits Caterpillar and stops because CAT has consistently performed for me over the past 20 years (in my retirement account) and shows no signs of slowing.  BUT....it also trades at $215.  So what else is around?

I found this list of the top 7 dividend aristocrats: https://www.nerdwallet.com/article/investing/top-dividend-aristocrats-list 

And of the stocks on that list Realty Income is trading at $61 and pays monthly.  I have $20 extra in my account that is just sitting there, so I am going to break the rules again slightly and make a $61 purchase for April 8.  That leaves me with just $11 cash so our rule-breaking is going to slow for the future.

I did consider Hormel and will keep it in mind but the ex-dividend date is April 7 so we would miss it the dividend by one day.

So that puts me at:

Stock Shares Paid Dividend received Month

HNDL 5 99.15 .11 March

KMB April

O May

May pick: Realty income at $61-ish

HOLD: 

APRIL: Kimberly Clark (KMB) $130

Rules Addendum: Purchases will be made on the 8th of each month.  This is annoying but is just how my finances are working out at the moment.  At some point if the project is successful this rule can be revised.