Dividend reinvestment over time is the sure-fire way to set yourself up for an easy financial future. Dividend Emperor will help you get rich SLOWLY. Come with us and develop an empire of dividend paying stocks which will provide an eternal passive income stream.
Looking forward to the new year of dividend income, I'd like to report an $825 projected passive income stream. This does not include 401k income which is managed through my employment. I hope to add another position or two this year which will bump the passive income over $1,000 for 2018. It is a modest dividend portfolio, but the key is the snowballing effect. For an early 30's working professional, it isn't bad I think. Between student debt and starting out as a millenial, I believe it is a decent start. I hope to pick up some more dividend paying stocks this year to add to the war chest. With the stock market performing as strongly as it has been, let's not lose sight of the power of passive income through dividend investment.
It just so happens that, thankfully, I will soon be heading on a family cruise in the Caribbean. This is a regular event for us, so I began thinking maybe this would be a nice investment opportunity. Even on vacation, we are thinking about ways to increase build the passive income portfolio and increase the flow of dividends. Carnival Cruises (CCL) has a solid 2.7% dividend yield at current levels. With cruises becoming a more and more attractive and cost effect means of vacationing, we've given this stock a chance to boost the passive income and (hopefully) help facilitate an early retirement.
Next, we will supply a year-end review of the dividend portfolio we are building and provide a forward-looking analysis for 2018. Disclosure: We own CCL.
At its current price, T is yielding about % 4.63 for a dividend. Considering this company's long history of success and weathering many "storms" in the telecommunications business, T is worth at least a look by dividend seekers. This stock can form a powerhouse in your passive income portfolio. Disclosure: No position in T, but may open one in the next year.
Our new president Donald J. Trump has an all-American palate. Love him or hate him, you need to admire 45's eating and drinking habits.
Trump - McDonald's Commercial (2002) - YouTube
Word has it that he has a "Coke" button installed within reach in the Oval Office so that he can have immediate access to a nice, cold Coca-Cola upon demand to quench his thirst. As you know, KO is a dividend aristocrat which has formed an integral part of many dividend portfolios over the years. It has given many an investor a nice stream of passive income and shows no signs of slowing down anytime soon.
We also know that while on the campaign trail, President Trump enjoyed a nice meal of KFC. In my humble opinion, there is no better American meal than a nice piece of fried chicken. KFC can always be counted upon to provide a nice, consistent product. If you want to own a piece of KFC, then look no further than YUM. YUM also gets you exposed to Pizza Hut and Taco Bell. Although boasting a dividend yield of around 1.7%, this is still a reliable passive income provider. I always like to say that investing in what you can eat or drink can provide solid, steady investment returns over the long haul.
Finally, Trump's penchant for McDonald's is well-known.
With a nice, fat 2.5% dividend yield, owning a piece of the golden arches can never lead you astray. With plenty of potential appreciation in the future and a solid dividend yield, MCD can be a long term buy and hold.
Even with global uncertainty and some angst over the healthcare laws, these Trump menu items can buy you some security and peace of mind and passive dividend income for the future.
This old adage is echoed every springtime. However, my thinking is to buy quality dividend paying stocks and hold them forever. The passive income portfolio can prove to ease your stress and perhaps lengthen your life.
Although not a dividend paying opportunity, I've been watching SNAP lately. I would not buy it at the IPO level, but based on FB's performance after the IPO, I'd consider jumping in if it tanks as we approach the end of the share lockup period. I'm open to thoughts on this as a speculative play. In the meanwhile, we are watching the grass grow with the dividend portfolio.
I just finished watching the Wizard of Lies on HBO, a TV movie about the discovery of the massive Ponzi scheme perpetrated by Bernie Madoff. I was thinking what if Bernie had taken some of the money thrown at him and just put it into some quality dividend paying stocks in the 16 or so years his fraud was running. I'm sure the victims wouldn't have been railroaded quite to the extent they were. If he had just put most of the money into some of the dividend aristocrats and created a portfolio of passive income, maybe the result would not have been so horrible. Or better yet, rather than giving your money to a man who everyone believed was delivering unbelievable (and unrealistic) returns, maybe the people could have gotten into dividend paying stocks. I know that waiting for dividend aristocrats to produce can be as fun as watching paint dry, but something that is too good to be true, usually is. There is no fast and easy path to riches. If something sounds too good to be true, then it is. Passive dividend income all the way !
The goal of this blogger and presumably its readers is to one day get to the point where you no longer need to “work,” and just live off dividends. Is it possible to live only off dividends? Clearly, the answer is yes. Eventually, with patience, dedication and the construction of a passive income dividend portfolio you can be financially independent through dividends. Slowly building a portfolio composed of high quality, dividend paying stocks can lead you to the passive income promised land. However, it will not happen overnight. Whenever you can, buy up a few shares here and there and hold them forever. As we have discussed in prior posts, the effect of dividend snowballing is powerful. Cheers.
This post will provide some background information on the blogger. I am in my early 30’s, have a professional degree, and have a professional relatively high pressure job. I came to the realization a few months ago that with the amount of money I am making, I am saving far too little and wasting a valuable opportunity to create a passive income portfolio to provide me and my family with financial security for years to come. Now, I have decided to turn my financial future around and build some security in the hope of early retirement.
I started investing in about 2010 when I was still in graduate school with a small amount of funds let’s say about $5,000. I slowly began accumulating blue chip, dividend paying stocks in my portfolio. I had both a Roth IRA and a taxable brokerage account through my bank. After graduation, I neglected to put more funds in the account but still realized some nice returns with dividend reinvestment factored in.
Today, 6 years into my working career, I have setup a weekly auto-transfer out of my checking account and into my brokerage account. Once a nice chunk of cash is accumulated, I add to one of my dividend stock positions or open a new one. My goal in a few years is to have a respectable passive income portfolio that yields a nice stream of income.
Between the IRA and the brokerage account, I hold about $30,000 in dividend stocks and ETFs. This number has been increasing with greater speed thanks to the auto-transfers. I will continue to provide more updates.