SEPTEMBER 2017
The market keeps tracking upward as investor confidence soars. The Dow Jones Industrial average closed at a record 22,405 on the 29th. This indicator is a good snapshot of what the market in general is doing, but your own personal portfolio will probably not match it exactly. A better 'market-wide' indicator is the S&P 500. But as with the Dow, your investment mix will surely be different in some way.
The fund (Vanguard Dividend Appreciation – VDADX) pays a dividend to shareholders 4 times a year, March, June, September, and December. A dividend is a benefit a shareholder receives for investing in a company. Not all traded companies provide dividends, But as stated before, this fund only invests in those that do. In fact, the companies owned by this fund must pay dividends and further, they must have a record for increasing dividends. If you want to buy individual stocks for income (dividends), the holdings of this fund are a very good place to start. This month, on the 20th, VDADX paid a dividend of 11.6 cents per share owned. The closing share price at the time was 25.59, so the dividend represented roughly a .45% return, or an annual rate of approx. 1.8%. not great, but steady. It's a bonus of sorts to our retirees. They can reinvest in more shares, take the money out, or leave it in a 'cash' state, perhaps to be used for emergencies or special expenditures. To keep it simple, I will have all of them reinvest it back into more shares of VDADX. Willie had a month end balance of $194,038. His monthly benefit check would be $2010.28 if he changed his mind and decided to file for benefits at this time.
Irma deposited the $1971 check and withdrew 2365 from her existing account, so her net total is $203,378.35.
Sam used his benefit check to supply $1552.20 of his monthly expenses. His untouched IRA account sat at $204,044.29.