Forward Dividend Income Projections as of September 25, 2018

• $10.91 of annual dividend income was added since the previous report.

• Total dividend income projected is $449.00 annually.

• The RTC Dividend Portfolio now generates $220.11 more than last year.

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RTC failed to meet its target of adding $25 in annual dividend revenue in September. However, the team believes that the portfolio took a step in the right direction.

Annual dividend revenue increased by 2.5% since August 28, 2018, and the portfolio is now more diversified as a result of 3 new positions being added.

The team disclosed 2 of the new positions, which are non-dividend paying stocks, in a recent post about investing in the cannabis industry. Again, we are not condoning this industry, and we recognize that purchasing non-dividend paying stocks will subtract from the top line. But after spending the past few weeks researching, it has become obvious that this is a real industry with real numbers and with a product that is in demand. This is not the same as speculating on Bitcoin or your typical technology IPO.

In addition, the team does not see any reason to avoid allocating 10% or less of the portfolio to growth stocks. At the end of the day, it’s about selecting the best companies, period. Furthermore, investing is about managing risk and creating a sustainable pool of capital to last for the long term. In this particular case, though, the goal is to create a portfolio to support financial independence.

Annual Dividend Revenue | Forward Projection #10

Number of businesses owned: 12 (Up 2 since the last report. 2 positions are non-dividend paying stocks)

Total annual dividend Income projected: $449.00 (Up $10.91 | Up 2.5%)

Average dividend income projected per month: $37.42 (Up $0.91)

Per day: $1.23 (Up $0.03)

Percent to target (Minimum $18,360 annually – will be increased by 2% yearly): 2.45%

[bctt tweet=”RTC Announces Results for September 2018 | $449.00 in Annual Dividend Revenue” username=”reversethecrush”]

Expenses

Cost to acquire income in 2018: $212.90

Expenses since the prior report: $24.80

Total income added in 2018: $220.11

Profit Margin in 2018: 3.38% (Down 7.84% compared to the previous report)

** Profit margin is not referring to overall portfolio return. It is a measurement to determine how much dividend income was added compared to the cost of trading fees.

RTC Management Commentary on Dividend Revenue

Overall, 2018 has been a successful year as forward revenue projections have increased by 96%. Not only has more income been received year to date, but the portfolio is on pace to generate nearly double in 2019.

On the other hand, the RTC Portfolio Manager’s aggressive growth strategy is leading to an increase in expenses. Although the $212.90 in fees is comparably less than the MER on a growth orientated mutual fund, fees have been eating into the profit margin and into the overall portfolio return. In turn, fees will become more of a focus as the team prefers to keep fees to less than $300 in total this year. Though, I must admit that lowering costs is not the highest priority on the list. The portfolio is far from a stage of mastery and is still very much focussed on growing annual dividend revenue at this time.

Moreover, a few more changes occurred during the month of September. One of the largest holdings, which is a utility company, announced a buyout plan to simplify corporate structure. In short, the company is in the process of acquiring all of the outstanding sponsored vehicle equity securities. This will most certainly have an impact. As a result of this proposal, the portfolio will include 1 less monthly paying dividend stock. However, I will receive additional shares of the utility company and that will push the position to be able to participate in a dividend reinvestment plan.

Concluding Thoughts

The RTC team made substantial progress towards building a more diversified portfolio in September 2018.

Two new growth positions were added, and the portfolio management team was still able to increase dividend revenue by $10.91.

In addition, the portfolio is only $8.78 away from surpassing the total that was added in 2017. Based on the average income added per month this year, the team still expects to reach $500 in forward dividend revenue by the end of 2018.

For the month ending on September 30, 2018, the RTC portfolio is now on pace to generate $449 per year. Furthermore, top line revenue has increased by 96% year to date and dividend revenue is now 2.45% to target.

Dividend Investors, did you make any purchases to increase dividend income in September? Do you think it’s ok for dividend investors to allocate a 10% growth stock sector?