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Why I Invest in Dividend Stocks

I invest in dividend stocks to grow a my passive income with dividend income. One day, my dividend income will be large enough to cover my monthly expenses and allow us to retire early. That is why we are always relentlessly searching for undervalued dividend stocks to buy. To put our hard earned cash to work.

We save a high percentage of our income each month, to help fuel our dividend stock portfolio. Having a high savings rate is a key pillar of our strategy and helps fuel the fire and push the snowball further down hill. While we are waiting to invest our money in the market, it is earning a high interest rate in accounts. There is NOTHING more critical than maximizing EVERY DOLLAR in your savings account.

READ: How To Maximize Your Cash – 4 Simple Methods! 

The 3 primary savings accounts I use are:

1. 1. SoFi – 4.3% APY on all savings accounts (lower for your checking account). The race for deposits is INTENSE! Banks and credit unions are offering great savings rates.
   2. Capital One 360 Savings – 4.00% APY – We use Capital One for our checking and savings account.
   3. Wealthfront – 4.5% without promotion. 5.0% with an extra .5% by signing up using my referral link (Click Here).

Read: Interest Rates on High Yield Savings Accounts Are SOARING!

Bert’s JULY Dividend Income Summary

In September 2024, we received $4,333.04 in dividend income! This was a 21.34% increase compared to last year.

September is a major month for mutual fund and ETF payments. That is why it is one of our favorite months to follow and watch the dividend income flow in from all sources.  For us, it was essentially an even split for stocks and mutual funds.  53% of our income came from individual stocks while 47% came from ETFs or mutual funds.

The devil is in the details though. The following charts share the individual dividends we received from our dividend stock positions, mutual funds, and ETFs.

Dividend income Observations

We share a few observations each month about our dividend income total for the month.

Observation #1: Johnson & Johnson is Still On Top

My wife and I each purchased 100 shares of Johnson & Johnson over a 2 year stretch in 2021 – 2023.  This is by far our largest individual paying dividend stock position in our portfolio.  We are each DRIPing approximately 1 share every quarterly dividend. The positions are continuing to grow without us lifting a finger.  It is really nice to have massive positions hat produce such large dividend payments.

Observation #2: The SCHD Dividend Is Really Growing

We are buying between 15-20 shares of SCHD every single week for my wife. After the big SCHD share split, my wife’s position is closing in on 1,000 shares of the dividend investing communities favorite dividend ETF.  Next quarter – that dividend should hopefully be massive!

Observation #3: Loving Some High Quality Dividend Payments

We always talk about how we need to trim down our dividend stock positions. The chart above clearly shows a large number of dividend stock positions in our portfolio.  I would love to trim some down, especially the lower dividend paying stocks.  However, it is always nice to see the high quality names that sit atop our dividend stock portfolio.

We receive dividend checks from plenty of Dividend Kings, Dividend Aristocrats, and other major players.  Target, Johnson & Johnson, Realty Income, T.Rowe Price, Archer Daniels Midland, Aflac, Lockheed Martin, are just some of the big names that paid us this month.

This is why we buy dividend stocks and great companies. The sense of satisfaction and pride that you get when you receive those individual dividend checks!

Summary

September’s dividend income is in the books. Like so many earlier months, I couldn’t be happier with our progress we make towards financial freedom.  Step by step, dollar by dollar, we are cruising towards early retirement. Months like these motivate us to save every possible dollar and keep pushing.  Onward and upward.

Did you have strong dividend income total’s this month?  How much September dividend income did you receive?

Bert

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The post Bert’s September Dividend Income Summary (2024) appeared first on Dividend Diplomats.

In this PPhREI roundup, we discuss how to convert active to passive income and also the temptation of lifestyle inflation. Enjoy! The Prudent Plastic Surgeon In this post, Dr. Frey…

The post How to Convert Active to Passive Income | PPhREI Network Roundup | 10-21-2024 appeared first on The Darwinian Doctor.

The month of September 2024 is another month of dividend income landing in my accounts. 

Due to becoming debt free, I changed my pay myself model. Starting the beginning of August 2021, I am paying myself 30%, just like before. This will now consist of 24% to investing, and 6% to savings.  The investment portion is going to my TFSA. Any money left over at the end of the month, I put towards investing on top of the money allocated from paying myself first. Hopefully, I can keep this up!

I received a total of $1017.70 in dividend income for the month of September 2024. This represents a 4.69% decrease from 3 months ago and a 48.0% increase year over year.