What's going on everybody? Welcome back to the Dividend Mascot Blog, seems like everyone enjoyed my blog post from last month. Especially my critics on Facebook (you know who you are), I bet they were sooo shocked when they saw Mastercard (MA) lol. Alright so let's just get straight to the money. So for January, I contributed $1,200.......I guess that's good for getting back in the game. I say that was a good warm-up to start 2021. The best music theme to describe January or possibly for 2021 as a whole, is my old YouTube music playlist from high school (2009 - 2013) Screamo, Death metal, Nu-Metal, Alternative rock 🤘 , and just a whole lot of deep growls with heavy guitar riffs in the background. I put that sucker on auto-play and did my thing. Because when your work 16 hour days every other day or back to back and you just brush it off like it's nothing because you getting used to it........you feel invincible beast. It always feels like I'm putting together an action movie for the retire to enjoy, but anyways let's get to the more important stuff.
So the Taxable account just went past $13,000+, I plan to get this account well over $25,000+ (worth of shares, not capital gains) in 2021. Nothing less than $25K, the capital gains will come whenever they decide to come. I'm not one bit worried about the potential massive capital returns from (MA), (MSFT) & (NKE) putting in the time holding will get me there. The share count is what's most important when investing in super low yielding, high growth, high dividend growth companies. You greatly anticipate before the next big dividend raise. It's like a revolving 12-month cycle of aggressively gathering more shares, so you can get that massive bump in dividend income in your year over year progress. Let's scroll down through the dividend income real quick so I can discuss more on this.
Roth IRA
Total: $74.43
Taxable Account
Total: $32.45
Grand Total: $106.88
YoY: 11.85%
Purchases: 2 shares (MSFT), 2 shares (NKE) & 1 share (MA)
Alright so I want to touch more on YOC (yield on cost), I could have explained more on this last month but I just wanted to outline my analysis on my three new projects. So last month I called yield on cost "the real sh!t" because it's like your building this hidden massive dividend yield that no one is seeing. I view stocks like (UNH) United Health as hidden gems 💍 with massive passive income perks that are hidden. (Both stocks are honorable mentions 😉). So let's say investor A invested in MasterCard for 5 years and ends up with a $100,000 position, plus adding in the tiny dividend yield of 0.50%. So $500 a year off of a $100k position right?.............wrong, the math that your not seeing is that investor A probably only put in $20,000 over that time frame and after several huge dividend raise's investor A is actually making 2.5% yield on the "original cost". It's like a hidden dividend yield that no one sees. Give it another 5 years (10 years total) and the YOC could be 7.50%.
So investor B comes along seeing investor A's position and gets all excited seeing the massive growth. So since investor B has been saving up a lot of money, and he throws down $100,000 in Mastercard stock like a boss......but the yield on cost is only 0.50% and you have to put in the time to get that massive growth. Both positions are valued the same but one has 2.5% YOC and the other has 0.5% YOC. You can not rush capital gains or yield on cost, the only variable I can control is the number of shares I can gather year over year. So I'm anticipating before both capital growth and the growth of YOC. It's like a delayed massive mathematical reaction.
There's another point that I want to touch on as well. I've seen so many comments on Seeking Alpha or Facebook of people regretting that they didn't aggressively buy more shares of their low yielding stocks like Visa (V) (shout out to the Visa fans). Whenever Visa announced a ~ 20% dividend raise I always witness this instant regret of people saying "I wish I would have bought more shares". So that's why I'm so cold and ruthless because I don't ever want to have that regret later. So last month I've said that I was going to gather $10,000 shares worth of Mastercard, Nike, and Microsoft. The little detail I forgot to add was that I plan on making all that happen this year. Not 5 years from now, not 3 years from now it's happening right now........just straight cold and ruthless (tough as nails). If there's something that I want in life I just open up my front door and make it happen, it's that simple. So this concludes what I wanted to talk about for this post, just 100% about YOC. Maybe I'll have more interesting stuff to talk about next month.
I'm going to have this last section of the post to be about life updates. So some of you may know that today happens to be my 26th birthday 🎉, so I'm just going to lay down my gaming couch and watch anime all day on Netflix. I'm also going to have some really good Japanese food to eat as well (with soy extra sauce). I have yet to open up my presents 🎁 sent to me by my parents\family members, I'll reveal some of the presents that next month. (I'm going to open them up as soon as this gets posted) I've also just got my DOT physical done, so I just keep getting closer and closer to getting my CDL class A license so I can start driving those massive 18 wheel commercial trucks you out on the highway. I'm more hyped up about seeing what happens when someone so ruthless makes a much higher income than the time I watched the Avengers: Infinity War trailer for the first time lol. So I hope you guys enjoyed and ill see you guys next time.
(If you want to view the entire portfolio click on the "portfolio" tab above next to the "home" tab)
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