Week 2: Adding to the FITB foundation

FITB as a foundation

Every portfolio needs a strong foundational stock at its center

Week 2 of my march toward a $1,000,000 portfolio is officially in the books and, slowly but surely, it’s starting to hit its stride. I mean, at least I have a foundation to build on.

I know it’s only been two weeks. I know I only have a three-position portfolio worth a little less than $800, but you have to start somewhere. Who said a foundation has to be big, anyway? Instead of focusing on how far you have to go – no matter what the journey is – it’s always good to celebrate the steps you’ve already taken.

As for those steps, I had a first this past week: I have more than 10 shares of Fifth Third Bank (FITB) in my portfolio. It’s my first 10-share position and one I plan on adding to in a big way over the course of the next couple years. I outlined all the reasons why, or at least some of them, in my last post. I picked up eight shares in my first week, using a good chunk of my intial $500 deposit, and added four more this week, spending $109.30 to increase my forward annual dividend income by $3.84.

fitbweek2

As you can tell from the pic above, I also have another major step in the right direction to look forward to as I’ll get my first dividend here in a couple weeks. My 12-share FITB position will earn me $2.88 later this month. It’s a small amount, but I’m still excited. Instead of depositing $20 on July 15, like I have every day since I started this march, I’ll esentially be depositing $22.88 ($20 from me and $2.88 from Fifth Third Bank). Eventually, and this is a long, long, long, long-term goal, the bank (or the other companies I’m using to build my foundation) will be depositing more cash into my account than me.

The formation of the foundation

Now that I have 10-plus shares of FITB, I’m going to start adding to the other two foundational stocks I picked to build my portfolio around: AT&T (T) and General Motors (GM). I’ll start with AT&T as its ex-dividend date (the date in which you need to own the stock in order to receive the dividend) is coming up the soonest (July 9). Once that passes us by, I’ll add to my GM position until it goes ex-div on Sept. 6. I currently have five shares of each. With Robinhood’s commission-free trading, I’m happy to continue depositing $20 a day and buying single shares of these companies whenever I have enough cash to do so.

This week’s numbers

Two weeks in and my portfolio is up to $786.25. I own 12 shares of FITB, five shares of T and five shares of GM, which will work together to produce $29.32 in forward annual dividend income.

That’s $29.32 more than my annual salary was two weeks ago.

March on!

March with me

Looking to get started? Start with Robinhood: http://share.robinhood.com/benjams352

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