Tracking Dividend Payments and My Yield
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I like to keep track of the reinvested dividends that I receive from my dividend paying stocks. It is a good reminder to me of the power of compounding and the effect that has on my portfolio. Although I use Microsoft Money to track my overall portfolio, I use Excel to keep a better tab on what happens with the dividend reinvestment.
Here is how I have it set up:
I basically record the number of shares purchased and the price it was purchased at to get at the total transaction cost. Add up the number of shares and the total transaction costs and divide and you get the average share price you have purchased your shares at. With this number I can then see the effect my purchases have had on the dividend yield my shares are throwing off:
As you can see, when I originally bought Home Depot in 2004 I was receiving a yield of 0.78%. Now, after all my dividend reinvestments and with the dividend increases that Home Depot has provided, the yield I am receiving from Home Depot is 2.49%. This continues to go up as I by more shares and the company increases its dividend.
Now I am not saying this is all mathematically correct from a true yield on investment perspective. It is just a way that I like to gauge how my portfolio is doing based on my goal: to receive as much dividend income as possible from my portfolio.
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Marshall Middle said:
I know an older gentleman that brings in about $1400 dollars a month, all from dividends. He is the one who first got me interested in the stock market and investing. It seems like you have a good plan and are well on your way to becoming passively wealthy.
December 6th, 2006 at 10:33 am
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[...] Tracking Dividend Payments and My Yield I like to keep track of the reinvested dividends that I receive from my dividend paying stocks. It is a good reminder to me of the power of compounding and the effect that has on my portfolio. Although I use Microsoft Money to track my overall portfolio, I use Excel to keep a [.] (more) [...]