I’ve been using Robinhood to generate some easy dividend income. With over 3 million users, Robinhood has saved people more than $1 billion in commissions. Its no-fee commission setup allows me to build a diverse stock portfolio without the hassle of buying in large amounts all at once. If you use my code, we both get a free stock share. Let’s take a closer look at our Robinhood dividend growth portfolio update for December 2017.
In this update, I’ll highlight the recent changes in our dividend growth portfolio with Robinhood. We like to periodically review our portfolio to stay on top of the best moves in dividend growth investing. Since stocks are at all-time highs, it’s a good idea to be patient and save some cash for future purchases. Recently, we’ve shifted our focus to top dividend growth funds.
To manage risk, I like to buy stocks gradually, one or two at a time. If a stock seems overvalued, I can sell a few shares instead of the whole lot. Dividend growth investing is one of the best ways to earn ongoing income. I prefer stocks with a healthy dividend payout ratio and good yields because as dividends rise over time, so does your income!
So, what’s dividend growth investing all about? It’s buying stocks with reasonable payout ratios that are likely to increase dividends over time. We offer the ultimate guide to get you started and help you build a dividend portfolio.
The secret to living off dividends is focusing on stocks that increase their dividends annually, boosting your income without any effort. Why use Robinhood? It offers commission-free trading with a simple interface that’s attractive to investors of any budget. While Robinhood doesn’t offer a dividend reinvestment program, you can manually buy shares as you like. For automated reinvestment, consider using another brokerage.
To check your dividends on Robinhood, open the app, access the navigation panel on the top left, go to “History,” and there you can see both past and future dividend payments. Refer to our app review and dividend guide for more insights.
When allocating your dividend portfolio on Robinhood, consider this breakdown: 20% to Dividend Kings, 35% to Dividend Aristocrats, 30% to emerging dividend stocks with strong track records, and the remaining 15% to international dividend growth stocks. Investing in a global fund or blue-chip stocks can cover the international exposure effectively.
When adding new dividend stocks to our Robinhood portfolio, I recommend stocks with high yields for reinvesting and benefiting from compound interest. Here’s what we’re buying and selling:
– TerraForm Power (TERP): Under its new management with Brookfield, it’s looking promising despite some challenges.
– General Electric (GE): Although it’s facing issues, I see value in their decision to cut dividends in favor of reinvesting and boosting growth.
Selling isn’t something I do often with dividend stocks. I prefer holding onto them unless their value has significantly increased, in which case, like with Boeing (BA), I may sell some to reinvest elsewhere for better yields.
Getting started with passive income through dividends is quite achievable, and it’s possible to live off these dividends indefinitely. We’ve got lots of resources, like a guide to building a dividend portfolio, a list of Dividend Kings, and tips to dodge common investing myths. Feel free to ask questions in the comments!
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