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The (almost) Daily Dividend Pie

The Dividend Experiment

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Might sound like a novice question but I current invest £500 per month into this pie and I do have dividends coming though 2-4 times per week, however when does the snowball effect really start to take hold with this pie?
What do you mean by the snowball effect exactly?
 

The Dividend Experiment

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When does the dividend payment really start to take how (compound interest.) is there a figure in this pie when the amount invested really start to take off?
Well, I wouldn't recommend setting it as reinvest automatically as there are too many holdings for this to work realistically until you have a substantial sum of money but instead adding an amount gradually each month/week whenever to the pie if that's what you are going to do, and then adding your dividends to that amount you are adding.

It's difficult to say when it 'takes off' as a large amount of money is subjective.
 

Sstocks

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Reserved for FAQs




How do I work out my daily payment?

The formula for the average daily income would be (Your Investment amount)*(0.035)/260 = (average daily payment)


Where can I find regular updates on how this portfolio is performing?


I am now tracking almost daily dividend portfolio progress and comparing it to leading Robo-advisor platforms as well as other pies that I have created on trading212. You can see how they are doing here:

 

Sstocks

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Hi, I would like to ask the name of your portfolio on etoro with a high yield. Secondly, would you please tell me on 212 how much is the average wait for the dividend? Thank you.
 

Investor93

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The concept behind the almost daily dividend portfolio is that basically the more often something compounds the faster it will grow. On top of this the feeling of getting a dividend (almost) every day is pretty great.






I used DividendMax and Dividend Data to find the historical pay dates and projections.

This wasn’t always easy as sometimes companies don’t pay at regular dates year on year so the first thing to note is that the dates are rough guidelines rather than an exact science. I think it would be impossible to actually make a portfolio that strictly pays every day and sometimes good enough is good enough.

After making the grid of dates I needed to choose the components.

A big problem with a set and forget portfolio like this is the fact that no investor wants to be paying attention to the stocks that are actually in the portfolio and seeing what they say on earnings call etc. So the first criteria I set was that these need to be reliable stocks. In the case of dividends there are many occasions were a shaky company is still paying out dividends when it really shouldn’t be according to its financial position, and the last thing we want in a complicated portfolio like this is for one of the companies to cut the dividend completely forcing us to rearrange it all again.

Criteria 1
Criteria 1 was that these need to be safe, reliable companies with a decent dividend history that weren’t showing any short term warning signs. Now of course you can’t predict another event like covid19 in the next 5-10 years but I am about 90-95% sure they won’t cut their dividend of the ones I have selected in this portfolio.

Criteria 2

The second criteria was actually more important than the first and it was that Trading212 must have the company in the selection of companies. I was actually pleasantly surprised that almost all of the companies that I researched did actually appear in the available database of Trading212 stocks and ETFs.

The next thing I aimed for was to get as many stable monthly payers as I could find as they would offer 12 payments per year and as there is a limit to how many stocks you can hold in a pie. After stable monthly payers, I wanted stable quarterly payers and unfortunately, the USA does both monthly and quarterly payers better than us here in the UK which usually pays semi-annually and occasionally annually. This means that the portfolio is heavily weighted to US stocks.

Finally, I added a few of my favourite stocks that maybe aren’t quite dividend aristocrats but still have a good few years of dividend history and seem like they are in a safe place to keep paying out. That could be based on the industry they operate in or on a case by case basis.

The final total amount of payments that this portfolio should provide 260 payments over the course of the year. That means that it really is an ‘almost daily’ dividend portfolio. Hopefully, we can make it grow and see how it compounds.

I would recommend:
  • Adding at least £400 to hit the threshold of every company within the pie
  • Holding for longer-term to smooth out fluctuations in the share price
  • Bearing in mind that the pie is optimised for sustainable regular payments, not the highest yield or highest appreciation in the share price.

Aggregate Pie Yield is roughly 3.5%
Capital appreciation is estimated at roughly 7.5%
A £1000 investment would mean an average daily payment of 14p (some days will be higher and some lower)

Find the pie here:

I've noticed you have a few other pies to offer. What would be your favourite if you were to invest into one?
 

The Dividend Experiment

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Sigera

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Hi, I recently started using this pie on the T212 platform and was wondering as to how the total amount of dividend payments sumed up to 260 as there are only 50 slices on the pie, even assuming they all pay quarterly. Apoligies if it seems like a stupid question.

Thank you :)
 

The Dividend Experiment

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Hi, I recently started using this pie on the T212 platform and was wondering as to how the total amount of dividend payments sumed up to 260 as there are only 50 slices on the pie, even assuming they all pay quarterly. Apoligies if it seems like a stupid question.

Thank you :)
Not a stupid question, but easy answer is that some are monthly payers not all are quarterly. Hope you are enjoying the pie
 

The Dividend Experiment

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The pie seems to have gone down a lot the past two days, what are the reasons for this?
Markets in general have gone down due to the threat of Omicron Variant. First cases found in the US today so people are getting worried. Also, December is a usual time for tax-loss harvesting so there might be some further selling off of losers (For example AT&T is speculated to be suffering from this)
 
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NickGatenby

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Thanks for creating this pie and all the other helpful info you have! I've been using this pie for 5 or so months now and was just wondering what you'd recommend in terms of rebalancing / adding / removing slices etc. Currently all I do is pay a bit of money in each month and leave it be but would it be sensible to rebalance to the starting percentages every x months. Also do you ever update the pie in terms of adding / removing shares anymore (as I believe I can just click a button to copy whatever you do as the piew owner?) or is this a pie you no longer edit? Thanks!
 

The Dividend Experiment

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Thanks for creating this pie and all the other helpful info you have! I've been using this pie for 5 or so months now and was just wondering what you'd recommend in terms of rebalancing / adding / removing slices etc. Currently all I do is pay a bit of money in each month and leave it be but would it be sensible to rebalance to the starting percentages every x months. Also do you ever update the pie in terms of adding / removing shares anymore (as I believe I can just click a button to copy whatever you do as the piew owner?) or is this a pie you no longer edit? Thanks!

I think rebalancing isn't necessary to do too often. Every 6 months or even once per year is probably ok for this type of portfolio. If you do it too much it just loses to the fee attrition and spread for no real benefit (in my opinion).

I update when there is a dividend cut, or corporate event/merge when I feel its necessary to adjust but the recent corporate events have mostly been spin-offs which Trading212 handles by giving fractional shares or a cash settlement so haven;t needed to adjust in many months now
 

bradleymoore641

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Hey, happy new year, hope you had a great Christmas, absolutely loving the pie, it’s going really well, and the simplicity of investing in a pie on trarding 212 is so great, just some questions for the far future.
1. Are you planing on managing this pie yourself like adding and taking stocks from it for a long time, say 40 years plus?
2. What would happing if you did suddenly stop managing it?
3. I know your staring a new job soon and you don’t know how much time you’ll have form YouTube but will you ever stop YouTube? Because I really like the almost daily dividend pie updates on your channel and hearing about all your other portfolios too.

Your channels helped me learn so much about trading so big thanks for that
 

The Dividend Experiment

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...just some questions for the far future.

Hey mate, hope you did too! To answer your questions:

1. I will manage it as per the general guidelines of removing when there is a cut/corporate event or as long as I am still supported doing so by Trading212. So I can't say about 40 years or something like that but Trading212 seem to like the pie idea so I don't see a reason to stop as its only a case of changing in rare events.

2. two answers to this question. If I just stopped managing there wouldn't;t be an issue for a while (as the companies I chose are mostly solid and reliable picks and unlikely to cut dividends in the near term. However things don't last for ever so eventually some of the companies might end up cutting dividends or falling out of favour etc so would eventually decay. In terms of passive income I think its set up nicely enough that the income could last for a long enough time. The other answer is what would happen if I deleted the pie, and this has been answered already in that Trading212 accidentally deleted it several months ago. Nothing happens directly to your holding in your account and you can still keep the pie however its up to you to maintain and edit it in the future.

3. I have already started the new job and finding that i can probably put out about 1-2 videos a week but its quite a tight stretch in terms of time (minimal social life, but COVID-related things are not helping with that much anyway!) so the YouTube is definitely here to stay, its like my top hobby. I am also hoping that the end of my current contract, enough progress will be made that I don;t need to renew and can just go full time YouTube but we will see.

Glad to hear that you enjoy it! Appreciate the support, and let me know if I didn't explain anything clearly enough
 
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bradleymoore641

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Hey mate, hope you did too! To answer your questions:

1. I will manage it as per the general guidelines of removing when there is a cut/corporate event or as long as I am still supported doing so by Trading212. So I can't say about 40 years or something like that but Trading212 seem to like the pie idea so I don't see a reason to stop as its only a case of changing in rare events.

2. two answers to this question. If I just stopped managing there wouldn't;t be an issue for a while (as the companies I chose are mostly solid and reliable picks and unlikely to cut dividends in the near term. However things don't last for ever so eventually some of the companies might end up cutting dividends or falling out of favour etc so would eventually decay. In terms of passive income I think its set up nicely enough that the income could last for a long enough time. The other answer is what would happen if I deleted the pie, and this has been answered already in that Trading212 accidentally deleted it several months ago. Nothing happens directly to your holding in your account and you can still keep the pie however its up to you to maintain and edit it in the future.

3. I have already started the new job and finding that i can probably put out about 1-2 videos a week but its quite a tight stretch in terms of time (minimal social life, but COVID-related things are not helping with that much anyway!) so the YouTube is definitely here to stay, its like my top hobby. I am also hoping that the end of my current contract, enough progress will be made that I don;t need to renew and can just go full time YouTube but we will see.

Glad to hear that you enjoy it! Appreciate the support, and let me know if I didn't explain anything clearly enough
No as always you explained everything perfectly, glad to hear you don’t plan on ending any time soon, I also hope trading 212 doesn’t remove the pie feature because I frankly don’t think I have the knowledge to maintain the pie myself (even though it requires very little maintenance) and I’m glad to hear your loving YouTube, keep at it it’s a channel I really believe has the potential to be big, but a also like that it’s not too big right now as it’s great to talk to you as the creator and I fear as you get bigger you’ll have less time for that with the increase in comments, but keep it up anyway and well done 🙌🙌
 

RichMan24

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Did I correctly see somewhere that you plotted all the ex dividend dates for the holdings in the (A)DD pie? Where is this please?
 

The Dividend Experiment

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Did I correctly see somewhere that you plotted all the ex dividend dates for the holdings in the (A)DD pie? Where is this please?
I originally plotted them then never expected the pie to be so popular so deleted the spreadsheet, unfortunately! I think someone was able to screenshot the video where it displays it and share that image on trading212 social area though