Live Off Dividends

Passive Income and Personal Finance

Dividend Portfolio 6/1/16

I take a long term approach to dividend investing. So naturally I look for companies with consistent dividend payments and long track records of dividend growth. I want my dividends to continue to grow even when I’m no longer adding money to the stocks. Essentially, my yearly dividend growth just needs to beat inflation. I also take a long term holding approach to my dividend stocks. The market is constantly changing and I feel too much buying and selling can actually hurt you in the long run. There’s of course situations when you should sell a long term holding but, I’m trying to do very little selling. My main focus is buying companies that I understand and that I personally believe in and at the right price. When I do think that I’m finally ready to retire early I don’t ever want to have to go back to working so I want to make sure I’m 100% ready when the time does come. Here’s what my dividend portfolio looks like right now. I’ll try to keep it updated monthly.

(last updated 6/1/16)

I’m currently up $1,703.30 (6.95%) YTD so for my first year investing I’ll take it. Also, I’ve made $200.44 from dividends in 2016. My 2016 goal for annual dividends is $1,200 and I’m right on track. I’ve been adding $440 to my dividend portfolio bi-weekly. My goal is to stick right around 4% average yield and I’m currently at 4.15%. In regards to average yield I couldn’t ask for anything more. I would like to stay above 4% but, I don’t ever want to be below 3.5%.

I think my portfolio is still pretty unbalanced right now and that’s something I’m starting to work on. I know that I’m going to have to sacrifice yield to balance my portfolio out and that’s fine. I plan on adding to Procter & Gamble, 3M, Northwest Natural and Cincinnati Financial when the prices are a little more to my liking. There’s also a few others I’m waiting to buy. The goal for 2016 is to have at least 30 stocks with a decent holding in each. This alone will balance my portfolio out a bit more. I’m constantly researching companies to find new stocks that will fit into my portfolio.

I’m currently reinvesting all my dividends. To me, this is just extra money that will start working for me. The $440 I add bi-weekly doesn’t get me very far so every little bit helps. I’m excited to see where I’m at come the end of 2016!

What are some of your favorite dividend stocks?
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  1. Hey John – Really impressive that you are so focused on this stuff at just 22 years old. You are really setting yourself up for that early retirement you desire.

    While I DO think dividend stocks are good…have you thought about potentially losing out on growth due to your focus on dividends? Wouldn’t a more balanced approach be to focus, say, 50% of your portfolio on dividend-paying stocks and 50% on growth? Perhaps at age 40 or whenever you hit early retirement you can shift it to 100% dividend, but with such a long investment horizon in front of you I worry about putting 100% focus on dividend-paying stocks.

    • John

      June 4, 2016 at 12:55 pm

      Hey David,
      Thanks for the kind words, I really appreciate it! And I hope you’re right, I just wish I had started earlier!
      I think I focus more on dividend GROWTH stocks. But at the same time I do see your point. The potential for a dividend growth stock vs a growth stock. I do consider HD to be a growth stock more so than a dividend stock but you’re right. I should diversify myself a bit more and add in some strictly growth stocks. I hope to achieve the same level of growth between dividends paid and stock growth but I will definitely be taking this into consideration and starting some research. Thank you for your insight David, always appreciated.

  2. Hey John – I stumbled across your site and I have to say it’s amazing! I’m currently 26 and using Robinhood as well. I’m still new to trading and trying to learn everything I can about dividend growth stocks so your site helps a lot. What are your thoughts on monthly dividend stocks?


    • Hi Kareem, I appreciate the kind words! You’ve already taken the most important step and that is beginning! My advice for monthly stocks are to consider the tax implications. Most monthly payers won’t be considered “qualified” so they will be taxed as ordinary income. Depending on your goals a good place to hold non-qualified dividend payers is in a Roth IRA. That being said, I hold O (monthly payer) in my taxable account anyways. Check out my ebook for a basic overview of investing in the stock market!

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