Welcome to my Monthly Dividend Income statements!
I am presenting you with all my dividend income since I started tracking them and since I took control of my investments. I use a spreadsheet to track all my dividend income and portfolio performance and share a guide to building your own dividend tracker.
If you are not sure about dividend investing, see “Why I chose Dividend Investing“. It’s the ultimate passive income machine. If you are still reading and like what you see, I strongly recommend that you sign up to my newsletter. It’s free and I have unique content.
Dividend income is a true form of passive income where you earn money in your sleep. Up until 2013, my portfolio was setup with high yield stocks mostly but I realized that dividend growth holdings perform better for both stock appreciation and dividend growth and you can see how the growth accelerated below.
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Dividend income is only one part of the journey. In fact, it’s only needed when you need to live from the income but you also need dividend growth to beat inflation.
I break down my strategy as follow:
- Accumulation Phase = high dividend growth stocks (usually lower yield and lower income). I expect the dividend growth to be over 10%.
- Retirement Phase = the financial independence nirvana with dividend income but not high dividend yield with no growth. The market yield will generally be between 3%-4% with a dividend growth over 5%.
To succeed with this strategy, I invest by looking at key data points provided by the Dividend Snapshot Screeners and selecting strong toll booth stocks for resilient businesses.
The simple approach has given me an annual return since 2009 of 14%.