What are your winners & losers today?

[fenders53]

(07-12-2021, 04:34 PM)ken-do-nim Wrote:

(07-12-2021, 03:47 PM)fenders53 Wrote: That's a good problem to have if your port div yield declines due to SP appreciation.  Your yield on cost hasn't changed if all dividends are still intact.

I recorded all the Q2 end numbers.  So when I publish my Q3 report, it will be interesting to see if any of those yields on cost have changed.  My eyes are mainly on HTGC, because it has raised its dividend every quarter for the last 4 quarters.

2020 Q3: .32
2020 Q4: .34
2021 Q1: .37
2021 Q2: .39

Maybe you understand this but lets keep the numbers at 5th grade math simple since we are typing all this.  

Pretend those dividends you posted are annual.  2020 you got 32 cents.  Your HTGC shares cost $10 so your yield is 3.2%.  Four years pass and and that 39 cents is your 2024 dividend.  Your yield on cost is now 3.9%.  If you buy new shares along the way at different share prices your yield will be whatever it is the date of purchases but only for the new shares.  If the Div never drops your YOC on those first share just keeps going up.  This is the secret to Dividend Aristocrats DGI stocks.  JNJ dividend is less than amazing on a new purchase.  If you bought 100 shares 30 years ago your YOC is so high you are getting your purchase price paid back in just a few years.  

Here is your homework assignment.  I paid $7.50 for my first 100 shares of XEL.  Check the current dividend yield and tell me what my yield on cost is for those shares?  I don't even know but it's a happy number.  I reinvested the dividend for 20 years.  The yield on cost for the next 100 shares is higher as the stock climbed but XEL DIVs paid for all of them.  This is why a DGI investor doesn't care so much when his stock's SP goes completely flat for several years.  If he has held the stock for years the yield is just fine as the Div grew.