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Dividend Stocks

Passive Income Dividend StocksDividend Stocks: 2018 target $12,000 passive income

Dividend income is my favorite form of passive income. Investors own a small part of these public companies and they work for you. These days, I focus on companies that consistently grow their dividend income over the years. This strategy will ensure that our dividend income keeps growing even if we don’t add new money. Currently, we reinvest all the income from this portfolio, but we’ll use it to pay our expenses once Mrs. RB40 retires full time. If you’re a new investor, here is a helpful post – How to Start Investing in Dividend Stocks.

As for reinvestment, I don’t DRIP in this portfolio. I just accumulate the dividend and invest in a stock or real estate crowdfunding whenever I see good value. I’m not sure if I will purchase more dividend stocks in 2018. The stock market is getting frothy and I don’t believe it can keep this up. I’m pretty sure it will be fine in the long run (30+ years), but we will probably see a sizable correction in the next year or two.

For 2018, I expect to receive at least $12,000 from our dividend portfolio. This is assuming the dividends remain stable. I’m hopeful we can reach this dividend income goal through dividend increases, reinvestment, and additional investment.

Currently, our dividend portfolio is at Vanguard. We pay just $2 per transaction and that’s a very good deal. However, you need to have over $500,000 invested in Vanguard funds to qualify for the low fees. For new investors, I recommend Firstrade. Firstrade is a great discount brokerage that I used for many years before moving to Vanguard. Their fees were recently lowered so now investors pay just $2.95 per trade. That’s really good.

You can see all of our passive income over on the Passive Income page. I will update these passive income pages monthly.

YTD Dividend Portfolio Update

  • 12/31/2017 value = $379,806
  • 4/30/2018 value = $361,022 (-5% year to date)

YTD dividend income = $3,756

Here is a chart of our dividend income since 2012.

Dividend Portfolio Income

2018 Transactions

PM – I purchased 50 shares of PM for $84.22 when the price dropped. I may add more if the price drops below $80.

Portfolio

You can see our dividend portfolio below.

Stocksharesprice 1/1/182018 YTD Income
Intel41146.160
AT&T20038.880
Eli Lilly10084.460
Shell40068.290
Target15065.250
Leggett & Platt50047.730
VPL20072.90
Abbott Lab10057.070
AbbVie10096.710
Aflac10087.780
JPMorgan Chase100106.940
McDonald100172.120
Coke10045.880
Mondelez20042.80
Altria Group20071.410
Western Union50019.010
General Mills10059.290
Procter & Gamble10091.880
Walmart20098.750
Kinder Morgan I 10018.070
Sysco30060.730
National Retail Property20043.130
Universal Corp.20052.50
Deere & Co. 100156.510
Phillip Morris200105.650
Omega Healthcare10027.540
Annaly Capital20011.890
Amgen40173.900
Consolidated Edison10084.950
Kimberly Clark100120.660
VNQI55060.500
HP10064.640
RB40 Dividend Portfolio 0

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Joe started Retire by 40 in 2010 to figure out how to retire early. He spent 16 years working in computer design and enjoyed the technical work immensely. However, he hated the corporate BS. He left his engineering career behind to become a stay-at-home dad/blogger at 38. At Retire by 40, Joe focuses on financial independence, early retirement, investing, saving, and passive income.

For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.

Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.