Dividend 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.
PM – I purchased 50 shares of PM for $84.22 when the price dropped. I may add more if the price drops below $80.
You can see our dividend portfolio below.
|Stock||shares||price 1/1/18||2018 YTD Income|
|Leggett & Platt||500||47.73||0|
|Procter & Gamble||100||91.88||0|
|Kinder Morgan I||100||18.07||0|
|National Retail Property||200||43.13||0|
|Deere & Co.||100||156.51||0|
|RB40 Dividend Portfolio||0|
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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.
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