My Dividend Growth Portfolio has a dual purpose: to drive growth in share value while generating a steady stream of passive income to support my retirement goals. With a current dividend yield of 3.47%, the portfolio is heavily weighted towards growth. However, as I approach retirement, I plan to shift my focus towards maximizing income while reducing exposure to growth. To achieve this, I make monthly contributions of $2,000-$4,000, totaling $162,000 this year, and supplement it with my tax-deferred ROTH TSP account. I reinvest all dividends through DRIP, but as my income grows, I'll carefully select reinvestment opportunities and set aside the necessary funds to cover taxes on my withdrawals.
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June was an interesting month for our investing portfolio. We sold our house in Washington due to us moving across the country for my job. We took $150,000 of our proceeds and added it to our investment portfolio, significantly increasing its' overall value. This addition brought out dividend portfolio to just shy of $250,000. If your interested in how I allocated those funds click on the picture below!
Below is the current breakdown of our portfolio after we made all the new purchases in June and our Value Breakdown.
Given the fact that we more than doubled our portfolio, our dividends in June were substantially larger than any previous month. Unfortunately, we were unable to make the purchases in time to have them reflect in our account with the exception of $SCHD which paid us $580 in dividends alone. This added an additional 8 shares to that position due to DRIP. My June dividend total came in at $846.
With the addition of our June dividends, our dividends for the first half of 2023 almost match our dividend totals for the entirety of 2022. In the first half of the years earned $1,729 in dividends.
Quarterly we earned $1,093 in dividends. Compared to quarter two in 2022, this represents a 278% increase over 2022 and 621% increase over 2021.
Below is a look at the last 24 months of Dividends payments.
High Yield Savings Account (HYSA)
In addition to topping up our dividend account we set aside around another $50,000 in our HYSA. This addition brought our account total to $75,051. Our HYSA is through American Express and yields 4%. In June we received $125 in interest. It was lower than expected since we only earned 4% on the $75K for half the month. We expect to earn around $250 a month moving forward.
Projected Annual Dividend Income (PADI)
$JEPI, $SCHD, and my HYSA continue to be three highest income payers inside my portfolio. Other than $JEPI, due to it being an Income ETF, make sense since they are my largest positions.
Below you can see the overall breakdown of the Passive Income our portfolio earns. Our favorite part is that we earn $1.42 every hour no matter what!
Thanks for tuning in on June's Portfolio update. We hope that this inspires you to start your own dividend invest journey! If you enjoyed the charts get a copy here with so much more, in our Investing Mega Pack! Get 5 Products in 1 great package! Also, follow us on Twitter to keep up to date real time!