Hello Dear Investor,
When it comes to passive income, I know a lot of people assume that you have to take on big risks or chase high-growth opportunities to see meaningful returns.
That is often not the case.
Building a passive income portfolio starts with baby steps. But you will notice huge results after a few years already.
About those results, I’m sharing my own experience right now.
What if I told you that you could grow your passive income by 25% in just 6 months, without taking any unnecessary risk?
That’s exactly what I did over the last 6 months. 5 months to be precise.
And now, I want to share how I did it, so you can implement the same strategy in your own portfolio.
But first let’s discuss a common problem preventing people to achieve such results…
Fear of Risk
One of the biggest hurdles in growing passive income is that many investors believe they have to take on high-risk stocks or speculative investments. This is especially true for dividend investors who fear that the stocks paying high dividends might be volatile or unreliable.
There are many stocks which have paid high dividends for decades.
But you don’t even have to go after high yields.
Just stick to basics. The basics of dividend investing are soooo simple - because they work!
Dividend Growth Stocks + Consistent Reinvestment
Here are 3 tips that helped me grow my passive income by 25% in just 6 months:
Focus on Dividend Growth Stocks
These are companies that consistently increase their dividend payouts. While their yields may not be the highest, their dividend growth over time can lead to high, compounded returns.
Google Realty Income or Dividend Aristocrats for example. Study those for 20 minutes and you’ll get the idea.
Then come back, Subscribe and get more information on next upcoming newsletter
Reinvest those divvies
Instead of cashing out the dividends, I’ve been reinvesting them back into the same dividend-paying stocks or similar dividend stocks. This allows me to increasing dividend income every quarter.
I even paid taxes for those dividends, and still those payments have grown. Trust me, dividends will pay you even if you employer wouldn’t. Dividends are your friends.
Invest to what is familiar to you
Years back, my first investments ever where;
Coca Cola
Betsson AB.
Yep. Individual stocks.
And yeah, sold those to buy a few beers. Then again, invest for yourself and good time with friends, right? 😉
At 21 years old (or so) I used to drink cola and play slow machines online. For a few weeks maybe before I realise it was shit.
However, I invested for Cola and Betsson, because I knew the brands and their products.
Most likely you have a phone and an operator offering the phone and internet issue with monthly subscription. Perhaps it is Verizon, for example.
If you are interested of dividend investing and don’t want any funds whatsoever, why not invest a small amount to a company you know and products you use?
If there are dividends, it is a huge plus.
The Results
By focusing on dividend growth and reinvesting dividends, my dividend income grew from €1,400 to €1,700 in just 6 months.
Investing to familiar stuff was done earlier, but it taught that even with market volatility, investing is not scary.
Btw, Example Income Portfolio is published next week. Join as a subscriber now to review it 👇
You can do the same
Imagine growing an additional $300 in income on this quarter alone. Multiply that by the next 3-4 quarters, and you can see how quickly your income can snowball.
So many people have done it.
And so can you!
That’s a wrap!
If you want to replicate these results, here’s your first step:
Start by researching dividend aristocrats (companies that have increased dividends for 25+ years). Also research for dividend ETF’s for more safety than individual stocks.
Study > before funny.
From there, remember the importance for reinvesting dividends and compounding your returns.
Then just start.
P.S. Want to dive deeper into dividend stocks and high dividend income? Subscriber as a paid subscriber to unlock all the benefits!
You can cancel anytime so it’s risk free. So why wouldn’t you at least try it out?
Thank you for being here!
Really enjoyed reading this and thank you for sharing. Always useful information and also practical and pragmatic. Thank you!