I used to write a lot about my Dividend Investing and Passive Income Experiment on my other blog, Neural Market Trends. I decided to stop writing about it there because it was diluting what that blog was about, machine learning and AI.
Heck, I haven’t been writing much about that topic since I started writing here and on Medium over the summer. So it was a surprise when I got a notification that my investment statement was ready and I noticed a big number in the dividends column.
So I decided to bring the conversation here, to this blog, and see where it takes me.
In 2021 I started to allocate some of my savings into stocks, ETFs, and mutual funds that generate dividends and income. I’m at the point in my life where I have built up a decent nest egg and have been lucky to ride the tech growth boom.
I’m trying to retire in 9 years — hopefully, sooner — so my investment strategy has shifted to more of these dividends and income-producing assets. Granted, I have to pay taxes on them right now — and I’m OK with this — I’m just plowing back all the gains into more shares.
For dividends only, I increased my passive income by over 500%. This number is higher when I add in the capital gains distributions but I’m just focusing on dividends right now.
In 2020 I made $1,079 in dividends and in 2021 I made $6,079.
Granted, I can’t live off of $6,079 BUT the experiment showed me that with due diligence, thoughtful planning, and reinvesting, I could eventually live off this without touching my invested capital!
DANG folks! This is real passive income!
I started this experiment because, at the end of 2020, my partner read off her the number of dividends her retirement portfolio generated that year. It was to the tune of $50,000.
$50,000! Holy crap Batman!
That sum of money is nothing to sneeze at and quite honestly is a livable income in low cost of living areas of the United States. Hell, you could live like a king in places like Costa Rica or Thailand on that income.
Generating passive income to live on is doable. I was always told it was but seeing is believing and I’m going “all-in” in 2022.
Read my 5 Tips to Building a Dividend Passive Income Portfolio post on how to get started.