Hello again everyone, I trust this weekend was just what the doctor ordered. Today’s message at church was simple, “the Mission Begins”. Meaning, it’s our duty as faithful followers of Christ to share His message and our testimony. I hope this week you’ll share His love, kindness, humility, and grace with everyone around you.
I had some extra time tonight so I thought I’d share with you some of my holdings and how they look tonight. About a year ago I decided to put some capital into my old Robinhood Account to invest into high yielding stocks. Largely, the plan I imagined when I did this is working out exactly as intended.
So, in today’s post I want to share with you my highest yield holdings & how much they’ve paid so far. Further, I’ll also share with you my plan for the account and how I’m managing it going forward. If you want to see my entire account strategy, here is a post I wrote last year, “Halfway through 2024…Cleaning up My Financial House”.
Post Agenda
- Robinhood Income Plan
- Robinhood Income Account Management
- My Highest Yield Holdings & How Much They’ve Paid so Far
Robinhood Income Plan
Before we get to the reason you’d likely read this post I want to share what I’m doing with this account. First, I like taking vacations but I absolutely despise paying for them. So I cooked up a plan to have this account provide that luxury with no additional out of pocket expense. Additionally, the hope is that the account will eventually become self sufficient and I won’t need to contribute additional capital going forward.
That said, the plan is relatively simple. Invest 100% of my capital per the allocation schedule(in management section below) until enough income is generated to pay for 100% of any reasonable vacation. I don’t want the income to just cover airfare or only the hotel. I want every dime I spend to travel covered by the income this account generates.
Lastly, you may see a slight discrepancy if you were to add up all the numbers yourself. I’ve contributed more than $100 a few times this year but it isn’t important enough for me to dig up. In all, I’ve contributed $2,000 over the past 14 months plus the starting balance below.
Robinhood Account Plan
- Starting Balance – $2,800
- Monthly Contribution – $100
- Number Holdings – 15
- Dollar Cost Average per Allocation Plan
- Remain 100% Invested
- Enjoy vacation! Somewhere with blue clear water preferred!
Robinhood Income Account Management
Managing the account is dead simple. Just buy more when capital is available or when the allocation schedule says I’m underweight. I should also add, even if a holding becomes overweight, I’m not selling. As I add more money or as dividends roll in it will naturally come back to the proper weighting.
For now, I’m not withdrawing any funds from this account. I’m simply putting $100 each month into the account and reinvesting dividends when they’re available. I prefer to wait until price falls to buy shares but that doesn’t always happen. In total, I’m just trying to collect as much of these holdings as possible to grow the distribution.
My time horizon until my travel is covered was initially 5 years, based on the $100 per month contribution. However, depending on what happens with my student loans in the next few weeks I may be able to increase that contribution. We’ll see how it goes.
Robinhood Income Account Allocation Schedule
Above is the graph from my spreadsheet showing the portfolio weighting and the holdings. I’ll include more detail about them below and in the next section. The takeaway here is that I’m very near complete allocation across every holding. Honestly, it took a while to get here because I just didn’t want to throw everything in all at once. I’m very much an advocate for dollar cost averaging. That said, hindsight is always 20-20 and putting it all in last March/April would have been a decent idea.
Regardless, below is the other half of this image, showing my target percentages along with where I stand on each from an allocation perspective.
Every holding is now within $50 or less to being on target. Admittedly however, there’s probably a more respectable approach to selecting the target percentages, I mostly used my gut feel for each. Well, gut feel and highest possible yield while still trying to remain grounded in reality.
My Highest Yield Holdings & How Much They’ve Paid so Far
Now, without any more jibber-jabber here are two lists. The first list is by total return and the second by income received.
Robinhood Income Account Total Return
| Symbol | Total Return | Total Return Percentage |
|---|---|---|
| VUG | $143.41 | 17.26% |
| EPD | $77.71 | 18.44% |
| MAIN | $50.57 | 13.07% |
| QQQI | $40.00 | 9.81% |
| ARCC | $30.15 | 8.60% |
| FDUS | $23.17 | 8.83% |
| YMAG | $22.92 | 12.11% |
| YMAX | $22.14 | 13.25% |
| SPYI | $19.04 | 4.80% |
| ISPY | $17.15 | 6.61% |
| IVVW | $9.35 | 2.96% |
| JEPQ | $7.88 | 3.00% |
| FEPI | $2.85 | 0.72% |
| JEPI | $0.99 | 0.44% |
| HTGC | ($9.26) | – 4.00% |
| Total | $458.07 | 8.47% |
Robinhood Income Account Distributions
| Symbol | Income Received |
|---|---|
| FEPI | $79.32 |
| YMAX | $74.35 |
| YMAG | $63.55 |
| IVVW | $44.28 |
| QQQI | $40.50 |
| SPYI | $38.07 |
| ISPY | $29.81 |
| JEPQ | $24.82 |
| MAIN | $21.84 |
| ARCC | $19.20 |
| FDUS | $18.37 |
| JEPI | $16.70 |
| EPD | $14.82 |
| HTGC | $13.33 |
| VUG | $3.89 |
| Total | $502.85 |
Final Thoughts
Well, there it is. My highest yield holdings & how much they’ve paid so far. I could have easily followed the Youtube crowd and just dove into MSTY or TSLY to make 2x to 3x this amount of income but I wanted my account to grow as well. That’s why I included a heavy dose of VUG into the mix. It’s not a high yielder but hopefully a high a grower. With any luck that growth will outpace any erosion that takes place elsewhere.
In all, the account is up by 8.47% today and at one point was up by 13.04% this past year. My income projection, based on current holdings, for the next year is currently $627.16. Though, that should grow rapidly as contributions and dividends get invested. I have an account goal of $10,000 and I’m currently at 52.32% of that goal. The logic there was that once I reached $10k the yield would spin off enough income that I could afford most vacations I enjoy. The current yield on cost for the account is 12.29%. In other words, $1,229 dollars of income. I realize that won’t get me a luxury vacation in Spain but for the vacations I prefer that’s pretty close.
In closing, I’ll leave you with a snapshot of the metrics for this account from my spreadsheet.
Until the next post.
God bless,
Jeff
