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Rhystic Scrying Portfolio – 2017 Introduction Dividends

Title

Rhystic Scrying Portfolio - 2017 Introduction Dividends

Summary

  • Will the Rhystic Scrying Portfoilio [RSP] support my financial goals?
  • Build a dividend payout baseline.
  • More than halfway to the goal!
  • Table and a graph!
  • Grammar discussion.
  • Make it happen.

Introduction

I have introduced the Rhystic Scrying Portfolio [RSP] here and have outlined its benchmark, the Rhystic Scrying Benchmark Index [RSBI] here. With those short-term goals out of the way, it is time to return to some of the longer-term goals:

  • Retire on July 1, 2019.
  • Construct the portfolio so that it delivers $36,000+ a year in dividends by retirement.
  • Live comfortably on less or equal to $36,000 a year.

Will the RSP support my financial goals? Screen name aside, I don't really have the means to scry the future (though I have been waiting to use that word!), but I can calculate my predicted income, map out the income stream on a quarterly basis and determine if the trajectory will achieve my target.

The first step is to list the expected dividend payouts at the start of 2017. This will create a baseline for future updates. And, as a software engineer, I do love baselines...

Then, update this baseline on a quarterly basis by using a snapshot of the portfolio, along with known variables (company-declared dividend payout per share, number of payouts per year), to graph a trend line. Also on the same graph, chart the progress of the actual cash being generated by the portfolio. So, predicted BOQ numbers and actual EOQ reality. By adding the tar get payout amount to the graph, I can gauge when I will hit the magic number. Or, as they say in German, die Frühestmöglichpensionsaltersinflexionspunktestimation. Drop that at a party.

Dividend Pay Out Baseline

The following table shows my holdings in 6 different brokerage accounts as of 12/31/2016. As can be gleaned from the table headings, the annual payout for each security can be calculated by multiplying the number of shares by the dividend payout per share by the number of payouts per year. All variables are known, but it is a forward number, as the payouts have not actually happened yet. Since I am a long-time holder of NLY and GE stock, I know there is a non-zero chance of dividend cuts. However, graphing a 5-year chart with a 1-year future period will still nicely predict the correct trajectory.

Rhystic Scrying Portfolio

12-31-2016

       

Account 1

         
   

Dividend

Periodic

Payouts

Annual

Investment Name (Ticker)

Quantity

/ Share

Payout

/ Year

Payout

.Cash Flow (USD=X)

3646.19

$0.0000

$0.00

0

$0.00

Annaly Mortgage Mgmt. (NYSE:NLY)

1700

$0.3000

$510.00

4

$2,040.00

Boeing Company (NYSE:BA)

100

$1.0900

$109.00

4

$436.00

Engility Holdings, Inc. (NYSE:EGL)

33

$0.0000

$0.00

0

$0.00

Exelon Corporation (NYSE:EXC)

400

$0.3180

$127.20

4

$508.80

Hasbro Inc. (NASDAQ:HAS)

200

$0.5100

$102.00

4

$408.00

HP Enterprise (NYSE:HPE)

790

$0.0650

$51.35

4

$205.40

HP Inc. (NYSE:HPQ)

790

$0.1330

$105.07

4

$420.28

Manhattan Scientifics (OTCQB:MHTX)

2000

$0.0000

$0.00

0

$0.00

Microchip Technology Inc. (NASDAQ:MCHP)

400

$0.3605

$144.20

4

$576.80

MicroSoft (NASDAQ:MSFT)

200

$0.3900

$78.00

4

$312.00

Rockwell Automation (NYSE:ROK)

200

$0.7600

$152.00

4

$608.00

Sirius Satellite Radio Inc (NASDAQ:SIRI)

500

$0.0100

$5.00

4

$20.00

Vanguard Total Stock Market (NYSEARCA:VTI)

400

$2.2150

$886.00

1

$886.00

Werner Enterprises (NASDAQ:WERN)

500

$0.0600

$30.00

4

$120.00

Sub Total:

$6,541.28

           

Account 2

         
   

Dividend

Periodic

Payouts

Annual

Investment Name (Ticker)

Quantity

/ Share

Payout

/ Year

Payout

.Cash Flow (USD=X)

30447.57

$0.0000

$0.00

0

$0.00

Sub Total:

$0.00

           

Account 3

         
   

Dividend

Periodic

Payouts

Annual

Investment Name (Ticker)

Quantity

/ Share

Payout

/ Year

Payout

.Cash Flow (USD=X)

1719.4

$0.0000

$0.00

0

$0.00

AGE High Income (Jim) (MUTF:FHAIX)

4533.381

$0.0080

$36.27

12

$435.20

Bank of America Corp. (NYSE:BAC)

450

$0.0750

$33.75

4

$135.00

Chevron Corporation (NYSE:CVX)

100

$1.0800

$108.00

4

$432.00

Equity Growth (MUTF:BEQGX)

865.511

$0.3900

$337.55

1

$337.55

General Electric (NYSE:GE)

400

$0.2400

$96.00

4

$384.00

Intel (NASDAQ:INTC)

400

$0.2600

$104.00

4

$416.00

L Brands Inc. (NYSE:LB)

100

$0.6000

$60.00

4

$240.00

Ultra (MUTF:TWCUX)

1790.292

$0.1000

$179.03

1

$179.03

Sub Total:

$2,558.78

           

Account 4

         
   

Dividend

Periodic

Payouts

Annual

Investment Name (Ticker)

Quantity

/ Share

Payout

/ Year

Payout

HP Enterprise

333.843

$0.0650

$21.70

4

$86.80

HP Enterprise

400.613

$0.0650

$26.04

4

$104.16

HP Inc.

342.606

$0.1330

$45.57

4

$182.27

HP Inc.

411.402

$0.1330

$54.72

4

$218.87

Sub Total:

$592.09

           

Account 5

         
   

Dividend

Periodic

Payouts

Annual

Investment Name (Ticker)

Quantity

/ Share

Payout

/ Year

Payout

.Cash Flow (MUTF:SPAXX)

109573.88

$0.0000

$0.00

0

$0.00

Cisco (NASDAQ:CSCO)

1000

$0.2600

$260.00

4

$1,040.00

HP Enterprise

1732

$0.0650

$112.58

4

$450.32

HP Inc.

1785

$0.1330

$237.41

4

$949.62

INSYS Therapeutics, Inc. (NASDAQ:INSY)

400

$0.0000

$0.00

0

$0.00

Intel

800

$0.2600

$208.00

4

$832.00

Vanguard Russell 2000 Value (NASDAQ:VTWV)

600

$1.6220

$973.20

1

$973.20

Verizon (NYSE:VZ)

600

$0.5780

$346.80

4

$1,387.20

Sub Total:

$5,632.34

           

Account 6

         
   

Dividend

Periodic

Payouts

Annual

Investment Name (Ticker)

Quantity

/ Share

Payout

/ Year

Payout

.Dollar Cash Flow (USD=X)

1000.02

$0.0000

$0.00

0

$0.00

.Euro Cash Flow (EURUSD=X)

750.42

$0.0000

$0.00

0

$0.00

Allianz Versicherung (ALV.DE)

150

€7.3000

€1,095.00

1

€1,095.00

Deutsche Telekom (DTE.DE)

1300

€0.5500

€715.00

1

€715.00

SAP (SAP.DE)

300

€1.1500

€345.00

1

€345.00

Total Oil (FP.PA)

450

€0.6100

€274.50

4

€1,098.00

Unilever (UNA.AS)

500

€0.3201

€160.05

4

€640.20

Sub Total:

$3,893.20

           

Total Annual Payout:

$19,217.69

Woohoo! I am more than halfway to my goal already!

Graph Predicted Payout against Actual Payout

Since nothing in life is worth doing unless you can measure and graph it, I have set up the following data series for the next 5 years:

 

BOQ

EOQ

Annualized

 

Prediction

Predicted

Actual

Actual

Target

Date

Payout

Payout

Payout

Payout

2016-12-31

$19 217.69

$500.00

$2 000.00

$36 000.00

2017-03-31

$19 217.69

$0.00

$0.00

$36 000.00

2017-06-30

$19 217.69

$0.00

$0.00

$36 000.00

2017-09-30

$19 217.69

$0.00

$0.00

$36 000.00

2017-12-31

$19 217.69

$0.00

$0.00

$36 000.00

2018-03-31

$19 217.69

$0.00

$0.00

$36 000.00

2018-06-30

$19 217.69

$0.00

$0.00

$36 000.00

2018-09-30

$19 217.69

$0.00

$0.00

$36 000.00

2018-12-31

$19 217.69

$0.00

$0.00

$36 000.00

2019-03-31

$19 217.69

$0.00

$0.00

$36 000.00

2019-06-30

$19 217.69

$0.00

$0.00

$36 000.00

2019-09-30

$19 217.69

$0.00

$0.00

$36 000.00

2019-12-31

$19 217.69

$0.00

$0.00

$36 000.00

2020-03-31

$19 217.69

$0.00

$0.00

$36 000.00

2020-06-30

$19 217.69

$0.00

$0.00

$36 000.00

2020-09-30

$19 217.69

$0.00

$0.00

$36 000.00

2020-12-31

$19 217.69

$0.00

$0.00

$36 000.00

2021-03-31

$19 217.69

$0.00

$0.00

$36 000.00

2021-06-30

$19 217.69

$0.00

$0.00

$36 000.00

2021-09-30

$19 217.69

$0.00

$0.00

$36 000.00

2021-12-31

$19 217.69

$0.00

$0.00

$36 000.00

With the corresponding graph:

Note that the predicted payout value is calculated at the beginning of the quarter (BOQ) and the actual payout value is calculated at the end of the quarter (EOQ). The annualized actual payout value is simply 4 times the actual payout value. Since the number of payouts varies from one security to another, this value may be a bit volatile, but, in general, it should follow the trend in the predicted dividend payout. High volatility is especially expected in Q2 when my Allianz Versicherung (ALV.DE) holding will pay one big, bad dividend payout in May.

Grammar Discussion

In general, I sincerely welcome any suggestions to tighten up my speling and grammer. However, Microsoft Word keeps highlighting the word 'payout' with a red underline (7 times in the previous paragraph!), which is making me hyperventilate. So, for any other OCD readers out there, I consider the noun 'payout', especially in terms of dividends, to be one word; I consider the verb 'pay out" to be 2 words. As in: Because the casino did not have enough cash on hand last night to cover the yuuugest pot ever, I agreed to let the casino pay out my poker winnings as a series of monthly payouts.

On this point, anything else is just fake news and will be ignored. And to any Microsoft software enginears reading this: payout, payout, payout, payout, payout, payout, pay out, payout, payout, payout, payout, payout, payout, payout, payout, payout, payout, payout, enginear.

Man, I feel better already…

Conclusion

So, there you have it. By gathering together the data from each investment in the Rhystic Scrying Portfolio [RSP], matching it to predicted dividend payout for each investment and tracking the actual cash being generated, I will be able to chart my progress, keeping an eye on the trajectory of the dividend stream. Since it is entirely possible that I will not hit the target dividend payout amount before my retirement date, I will just continue working until I do. Hahahahahahaha! Just kidding! Retirement, for the win, baby!

Disclosure: I am long all securities listed above and have a fondness for USD=X and EURUSD=X.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (even from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

First published February 12th, 2017.