How Much Did I Earn Investing In A Dividend Stock?
I started getting interested in investing in the stock market circa 2014.
This story is way down the line in my investing journey (2021).
I have been burned multiple times and have given up on day-trading.
This is one of my successful Peso Cost Averaging (PCA) trades! 🤘
Why I decided to PCA $SPC?
I was browsing r/phinvest and saw a thread about people talking about their dividend profits. $SPC was mentioned numerous times and I looked it up on pesobility.com.
Checking the previous years in 2020, I can see that $SPC released dividends @ ₱0.40 per share twice for that year. Dividend rate is good but the real kicker here is the low price per share.
The price per share of $SPC at that time was at around ₱7.00.
($FB – San Miguel Food and Beverage, Inc. was at ₱70.00 per share on March 2020)
Let’s say you invested ₱50,000 in $SPC that would equate to around 7,000 shares.
Your dividend payout would be your number of shares (7,000) x the dividend rate (0.40). You would be earning ₱2800 just by holding your $SPC shares.
Hold long enough for the second dividend release date and you’ll get another ₱2800.
Just rough estimates but that is around 10% of your principal investment of ₱50,000 alone!
Let’s then say you invested ₱50,000 in $FB that would equate to just around 700 shares and a dividend payout of ₱280.
Let’s PCA!
January of 2021 – I did the rough math and convinced myself to start buying ₱10,000 worth of $SPC shares every month!
(Tiyaga muna tayo sa sardinas sa panahon na yan)
February 2021 – another month of so-so food for dinner. Another ₱10,000 worth of $SPC shares bought.
This would go on until March and April of 2021.
By now, four months have passed and my ₱40,000 is now 3,800 shares of $SPC with an average price of ₱10.5468.
Bills Got In The Way
Many things got in the way.
I can’t allocate ₱10,000 per month anymore.
I would have liked to continue on to PCA but other things should be prioritized.
Either way, I still have a decent amount of shares with a good average price and I’ll just have to wait for the dividends to be released.
Investagrams is my go to place to check for upcoming dividend release dates.
Upcoming dividend info can be seen on the blue icon on the bottom row of the chart.
Triple Kill!
In 2020 – $SPC release multiple dividends for that year.
Here is how much I earned on dividends alone.
APRIL @ 0.40 per share
3,800 shares x 0.40 = ₱1,520
JUNE @ 0.40 per share
3,800 shares x 0.60 = ₱2,280
DECEMBER @ 0.40 per share
3,800 shares x 0.55 = ₱2,090
TOTAL ₱5,890
Maswerteng Dahon got ₱5,890 or 14.725% of my principal investment of ₱40,000.
There’s More?
Yep, there’s more!
My average price for my 3,800 shares of $SPC was @ ₱10.5468.
I sold all of my $SPC shares last December @ ₱13.82 netting me a 30% profit from my principal investment.
Next Steps
In my years of trading I found out that Position Trading works well for me.
Certainly more chill than day-trading.
In a very slow and chill way, I’ll continue analyzing which stocks to invest in – in the PSE or ehem Foreign Stocks!.
I have started to accumulate some shares of $SCHD in etoro.
Let’s see how well this one goes!
Want to start investing in foreign stocks?
Use my link to create your account today!
Hey there my friends!
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