Owning stocks from my Master Stock List, I’m generating passive dividend income from my Vanguard taxable account.
Each month, I contribute dollars to my Vanguard money market account and wait for it to build enough cash to purchase a dividend stock(s). Now that Vanguard has free stock trades, I’ve started building smaller positions in quality companies. In Q1 of each year, I also receive annual bonuses that will go to the purchase of dividend stocks too.
Goal
Generate over $15,000 in forward annual stock dividend income by 6/30/25. This means on 6/30/25 that my next 12-months of dividends should be expected to be over $15,000.
Updated Income
In 2021, I really only added one significant dividend stock to my portfolio – Unilever (UL). It’s currently my 4th largest position and will likely growth in 2022 because it’s struggling due to Russia/Ukraine war and inflation input costs. It’s a strong, solid company currently yielding over 4.5%.
Otherwise, 2021 has been about filling up on stocks I’ve already owned. The big story in my stock portfolio is that British American Tobacco became my largest position. It was my big move of the year and it’s yielding well over 8%. In fact, Unilever, British American Tobacco, and Johnson & Johnson collected most of my new funds in 2021.
In 2022, I’ll likely add some big tech names (not much but add a little spice) to the portfolio. It won’t be much because technology is too volatile for my portfolio .. it’s really not what I’m looking for. There’s a reason bank and technology stocks will never play big factors in my taxable accounts – they jump around too much. Up 50% and then down 60% and then back up 40%.
Looking forward, I’m expecting to receive $8,595 in forward (next 12-months) dividend income. This is assuming I make no changes to my current stock portfolio and add no more capital (though I will add capital). The $8,595 leaves me $6,405 short of my $15,000 dividend income goal (by June 2025) but I’m happy with my progress and I’ve got to time to close the gap. I know when I put my growing cash to work I’ll be much closer to my dividend goal. I’d bet that when 2022 is complete, I’ll have collect over $9,000 in actual dividend income.
One factor not considered in my dividends is that of my growing Fundrise (real estate crowdfunding) account. That account is currently in the growth account of Fundrise and I’ll switch that over to collecting dividends when the time is right. That will add another $3,000-$4,000 in non-stock dividends to my income when I’m around 67 years old (about 7-8 years away).
Thanks for reading!
Mr. TLR