Whats up fellas, hope you all had a great month with your dividend payments. This month was not bad at all now being in the $50+ range now so im feeling warm and fuzzy with my portfolio's performance =). So last month i explained my strategy with Drip ratio's, and 1 share drip per year math formula's, basically my Drip Strategy Mark II. Why is it that i call it Mark II, because my first strategy (Mark I) was to stop diversifying and just buy more shares of my current holdings, the flaw with Mark I is that i was all over the place, and i didn't have a strict organized buying plan like i do now. All of this is to better my chances of compounding my dividend income to $1,000 a month by 30 years old. At the end of last months blog i told you guys that i would add a Taxable account, this will be part 2 of my dividend strategy =) i will discuss my strategy with that after we go over the dividend income.
Without further or do lets get to business
Roth IRA
Taxable Brokerage Account
Total: $51.73
YoY: 71.51%
Purchases: 11 shares of LNT, 7 shares of QCOM
It feels soooo good getting back into my groove again, my body feels refreshed working my crazy hours again guys =). Who knows i may even surpass $1,000 in contributions with in a month ($1,000 is my current record). Ok so currently ill be funding LNT, QCOM, and KO, these 3 stocks have the highest DRIP ratios compared to the rest of the stocks that pay in the 3 separate payment schedules. As ive said before, once they reach DRIP 1 share a year i move on to the next stock with a slightly lower DRIP ratio and repeat the whole process again.
Taxable Account Strategy
Ok so i would call this the second portion of my DRIP strategy i explain in the last update. The blog was long enough last month so i decided i would explain everything else in this months update. So your probably wondering.......what dividend stocks do i plan on holding in this account. VZ, RDS.B & PM 3 strong high yielding dividend stocks and as a bonus there all cornerstones in there different sectors (Telecom, Energy, & Tobacco). I'll leave it at 3 holdings for right now make push it to 6 holdings later down the road, i want to keep this account short and simple while my Roth IRA is nice and fined tuned with 23 holdings ;)
So once i max out my $5,500 limit for my Roth IRA, im going to bust my tail end off for these 3 holdings. I came up with a strict investing schedule that could potentially triple my dividend income in 2019. So if i make like $550 in 2018, theoretically math wise i could end up with $1650 in dividends earned throughout next year in 2019. This is how it can be done, once i max out my Roth IRA im going to funding those 3 holdings for 6 months straight then ill switch over to my Roth IRA for 6 months and repeat the process over and over again. Doing this will force my Taxable Account to grow and DRIP like crazy because theres only 3 holdings in that account.
So what are my dividend goals with this Taxable account? Well i say by 40 years old (17 years from now) i would like to be receiving like $1500+ on a monthly basis from this account as a birthday present to myself XD, this will act as supplemental income in the future. I have a feeling that im underestimating the power of compound interest it could end up higher but we will see how things go, dont plan on retiring until im 60 so ill still be growing both accounts making my supplemental income continue to grow. 40 year old self will greatly appreciate this amazing birthday present, receiving them sweet fat dividend checks =) (having them sweet shades on with a nice hat on turned to the side rollin real smooth at 40)
Well thats it for this update folks, hope you guys are enjoying the blog. If you want to see more of the "Dividend Mascot" make sure you go click on that follow button for my Facebook page. As always people, keep on drippin them sweet dividends and ill see you guys next time =)
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