As you may recall, one of my current blog goals is to build a monthly dividend ladder. This goal is another step towards creating additional passive income streams for my Money Tree. In addition to already owning 100 shares of SPHD, I wanted to step into some specific equity names with the progression of STMT financials.
3rd Rung of Ladder is Pfizer: PFE
Pfizer:PFE was the first piece to the STMT Monthly Dividend Ladder. The original purchase was for $108.81 for 3 shares with an average price per share of $36.27. PFE paid the announced dividend of $0.39 per share on March 5th. PFE holds the third rung of the dividend ladder with payments in the Mar/Jun/Sept/Dec time periods. In addition, I do want to deploy a dollar cost averaging (DCA) approach to each of the selected equities for the dividend ladder. My DCA plan will not be set on a regular monthly amount to invest but rather set on a % reduction from original purchase. With PFE, I set a limit order to buy another 3 shares if the stock fell 5% from my original purchase price, roughly around $34.11. That order was recently executed and know I have 6 shares of PFE in the STMT portfolio
2nd Rung of the Ladder is Bank of Montreal: BMO
Bank of Montreal:BMO was the second purchase for the dividend ladder investment. Since one of my criteria is to keep purchases to ~$100, I purchased 1 share of BMO on January 25th for $76.40. BMO holds the second rung on the dividend ladder with payments occurring during the Feb/May/Aug/Nov months of the year. I just received the first dividend payment from BMO on February 26th for $0.83 a share. In looking at the detailed ledger, I noticed that there was cash movement out of my account for $0.12/share netting down to $0.71 per share resulting in a dividend yield of 3.7%. My initial inclination for the negative cash movement is currency related but not 100% sure, I will be investigating and incorporate the findings appropriately as needed.
1st Rung of the Ladder is Verizon: VZ
That leave with Rung 1 of the ladder, representing Jan/Apr/Jul/Oct months, is still open. Keeping my criteria in tact, I have decided to put Verizon:VZ in that spot. If you are not familiar with VZ, it is in the telecommunications industry. This has been a recent add to the Warren Buffet holdings and comes with a ~mid 3% dividend yield.
Lastly....
Lastly, some of you have asked which brokerage firm I use for the Money Tree portfolio in the wake of the Robinhood saga. I have decided to use Ally bank for all of my Money Tree accounts, including brokerage.
Ally Savings Account that currently is offering 0.50% always remains an attractive rate compared to peers
I am a finance professional with over 20 years of experience and very passionate about all topics related to finance; enjoying the aspect of teaching and educating others along the way. All in all, I will show you how big this money tree can get over time as I get the branches (Earn, Save, Invest) as high as possible…Click here to see my financial progress to date: How high is the Money Tree?
