I’m carrying out my promise.
I’ve been edging closer to consolidation for over a year, as you are aware if you have followed this series.
I took the last step last month.
The last three dividend-paying corporations in my taxable account that I sold were Nike, Hershey’s, and Starbucks.
A clean break. An era’s end.
They failed me, but the approach did, not them.
My babies were Starbucks, Hershey’s, and Nike. They carried out their assigned tasks precisely. Every quarter, they provided me with a comforting sense of progress, grew a little, and paid consistent dividends.
But the returns weren’t going to make a difference unless I had thousands of shares and saw a rare breakout. The strategy was the problem, not the businesses.
I was more active than efficient when I owned individual dividend stocks. Now, I need a portfolio that performs better than I did without wasting my valuable time on stock selection or watching the ticker.
That concludes my protracted and convoluted dividend voyage.
Since late 2022, I have owned both Nike and Hershey, and I have seen modest gains: 5% for Nike and only 0.5 percent for Hershey.
Nike’s capital gains were $308.14, whereas Hershey’s were only $31.99.
I sold for precisely that reason.
The total cost of two date evenings was $154.87 for Hershey and $95.52 for Nike due to dividends.
Starbucks performed somewhat better.
It has generated $667.24 since May 2023, which is $577.46 in capital gains + $89.78 in dividends. Still, without a lot more money, nothing revolutionary.
The only dividend payer in my taxable account at the moment is the Vanguard Total Stock Market ETF (VTI). And it seems correct.
No more overlap. Stop overanalyzing.
I eventually acknowledged that and took action by selling my babies.
This sale wasn’t a panic. It was a course correction in real time.
VTI and a couple stocks in my Roth IRA will continue to pay dividends. However, the days of manually keeping track of every penny on the refrigerator’s front are long gone.
While it lasted, it was enjoyable. Each reward included a lesson. Every one of them seemed like a silent victory, a nod from the future me that said, “Go on.”
I have added $128.54 in dividends since the last update, making the lifetime total of my taxable account $1,467.60.
Even better results have come from my Roth account. Since the last update, my lifetime dividends have increased by $375.66 to $3,743.16.
I suppose reaching $5,000 in dividends is another significant achievement.
The true delight, though, comes from seeing my daughter Parker’s accounts flourish.I started investing in the first place because of her.
On June 24, Parker received $134.39 from the Vanguard High Dividend Yield ETF (VYM). Her dividends were automatically reinvested into multiple full shares for the first time, namely 1.034. The real compounding starts now.
Her lifetime balance in that fund increased to $176.86 after she additionally received $53.77 from her VT stake.This account will expand quickly now that her portfolio has been reorganized. Parker currently has $1,225.25 in total dividend earnings from both her custodial and Roth accounts.
I’m really proud of her for getting up to my taxable account.
However, I’m no longer as excited about dividends.
Not because dividends were no longer effective. They carried out their assigned tasks precisely. They offered a reliable, consistent, and comforting source of income. I eventually outgrown the approach. Or perhaps I simply changed.
I learned patience and discipline from dividend investing. However, I no longer maintain positions because of hope or nostalgia. I want more than predictability now. I’m looking for asymmetric upside and exponential growth.
Compounding was not the focus of this round. It has to do with ending a chapter.
Well, it was time.
More ‘Money Talks’ by Darnell Mayberry
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Less money, more meaning. Cutting back made room for the moments that matter: Money Talks
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How much time is truly yours? I counted the hours and didn t like the math: Money Talks
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Shift happens! How my new work schedule changed my perspective: Money Talks
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Trade alert: I m leaving NBA writing. After 20 years covering pro basketball, I m writing a new story: Money Talks
