Today’s steps: capital gains, a dividend and a purchase


Today was the type of day I wish I could repeat over and over and over again for the next 30 years or so. I made a purchase, earned a dividend and my portfolio, which grew in three different ways, even experienced some modest capital gains.

Unfortunately, days like today are hard to come by.

The capital gains, for example, are never guaranteed. This year has featured far more up days than down days, but you never can know for sure what the market is going to do day in and day out.

The dividend is a bit more controlled, but still not an exact science. I built my portfolio so I’d average at least one dividend a day. With 135 companies, all of which pay quarterly dividends, I’m at 540 payments over the course of a year … that’s right around 1.4 a day. That’s just an average, though, and companies can and do change the day and even the month they make the payments, so it’s pretty much impossible to build a portfolio that literally spits out a dividend every single day.

The purchase part of the equation is something I have total control over … just not enough money to make one every single day. If I had the cash, believe me, I’d be buying solid dividend payers each and every day. Unfortunately, though, I just don’t have the cash.

So, why’d I tell you all that? I did it to give you an idea of just how awesome days like today are for me … and hopefully some of you. Don’t take them for granted. My goal is to have one a week, but I haven’t tracked that up until now, so who knows how often I’ve managed to do that this year. I’ll try and keep tabs in 2018 and let you know.

I’m honestly happy any time my portfolio experiences any one of the three things. As a small investor, I consider anything I can build off of a good thing, with capital gains, dividends and purchases all being great examples of positive things to build on.

Today’s Dividend


Today’s dividend came from Avery Dennison, a company that does some pretty cool things with what I’d assume many believe to be a pretty boring business – labeling and packaging solutions. I own one share and AVY rewarded me with a $0.45 dividend payment, my third since opening a position back in March.

I bought my share for $80.32 and, as of this post, the company is trading at $116.68. Yeah … it’s been a good year for Avery Dennison. The stock is up $36.36 (45.27%) since purchase.

AVY pays a $1.80 quarterly dividend with a yield of 1.54%. The yield is lower than I like, but, with a payout ratio of 49% and average raises of 10.33% each of the last five years, it’s going up.

Today’s Purchase


I stumbled upon a stock that I found interesting today so, well, I bought it. It was cheap – cost me just $6.53 – but will earn me an annualized dividend of $0.44 for the foreseeable future.

The company, which I’m sure you figured out thanks to the photo accompanying this section of the post, is Sotherly Hotels (SOHO). It’s a hotel REIT that pretty much buys and renovates older buildings and turns them into what look to be some pretty sweet hotels. It owns 12 hotels at the moment, with it’s newest – the Hyde Resort and Residences in South Florida – opening just this year.

SOHO has a dividend yield of better than 6%, which was more than enough to get me interested. Earnings aren’t going up as the company has and likely will continue to invest in more assets, but revenues are most certainly on the rise. It’s also a pretty young company with a market cap just north of $100,000,000. Compare that with a more recognized name like Hyatt Hotels Corporation (H), with a market cap of 8.571 billion, and you can really see the difference.

I like what Sotherly seems to be doing. Based on the pictures on the website, I’d like to get a room sometime soon, too.

March on!

2 Responses to “Today’s steps: capital gains, a dividend and a purchase

  • Congrats
    3 questions Ben
    1. What type of spreadsheet are you using to track your monthlies ?
    2. What is your detailed investment strategy ?
    3. What sources are you using for your stock research?

    I suspect we are all chasing the holy grail of monthly income if we are following your blog

    • Hey, J … I use good sheets to keep track of my investments. I use a formula I found online, which automatically updates cells like company name, share price and total value when I plug in the ticker symbol. I have to update the dividends myself, but that’s not usually that hard as they only change once a year or so. My detailed investment strategy, simply put, is to create a super consistent and reliable stream of income through dividend-growth investing. I’m a couple companies short of owning 10 that pay in January/April/July/October, 10 that pay in Feb/May/Aug/Nov and 10 that pay in March/June/Sept/Dec. Once I have those set, meaning I’ll earn dividend payments from 10 companies each and every month, I plan on working on evening out the payments per month. For example, I’m earning about $33 in Feb/May/Aug/Nov and just $9 in January/April/July/October. I want them all to be pretty close to even. Then I’m just going to build from there. I use the info Chase provides me with. They have pretty good reports. Hope that helps! Feel free to reach out with any other questions anytime.

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