I’m currently using Robinhood for my dividend growth portfolio, and it’s pretty simple to build one with them since they offer commission-free trading on stocks. They’ve also introduced commission-free options trading, which is a handy tool for managing risk. I’ll keep you updated on my Robinhood dividend stock portfolio so you can see my progress.
In June 2018, my Robinhood dividend portfolio had another successful quarter. If you’re not familiar with Robinhood, you might want to read our review on the app to learn more about it and how I plan to use it.
With this portfolio, I often use covered calls, and Robinhood makes this easy with no commission fees for options trading, which is great since many brokerages charge high fees for this. Using options can boost the income in your dividend portfolio. The best stocks for writing covered calls are those that pay dividends and have undervalued valuations that haven’t realized their potential yet. Take General Motors, for example; it was undervalued and traded between $36-$40 for years before its value increased by 15-20% following earnings reports.
It’s smart to write a covered call on a stock between significant events to avoid increased volatility. Ideally, you’re looking for high volatility that is expected to decrease, which can reduce the option’s extrinsic value and increase your earnings.
If you sign up for Robinhood, we both get a free stock share. Investing in dividends is a tried-and-true way to build wealth, as they ensure a stable return and contribute significantly to overall stock market returns.
Our current dividend portfolio with Robinhood is focused solely on dividend growth, even though we have other accounts like a Roth IRA, 401(k), and a Health Savings Plan, which I consider more as retirement funds.
Since the last quarter, my Robinhood dividend portfolio’s value and income grew by $4,800 and $775.64, respectively. I track my dividend income for free using Personal Capital, which is great because seeing dividends come in is satisfying.
What dividend stock is your favorite? In the last quarter, I had some cash available and decided to invest more in AGX and GIS stock using tools like FINVIZ and GuruFocus to guide me. General Mills insiders have been buying up stock, which I like, and they’re restructuring for growth while improving their balance sheet, all with a good yield.
We’ll keep tracking the value of our dividend stocks and the annual income they generate over time. At Millionaire Mob, our aim is to help you build wealth through dividends, sharing our holdings transparently so everyone can learn and prosper.
Investing for passive income, particularly through dividends, can make living off your investments forever a reality. There are resources available to boost your income, like building a dividend portfolio infographic, guides to successful investing, and lists of no-fee reinvestment stocks, among others.
By investing in high-quality dividend stocks, you unlock unlimited growth potential, and with Robinhood, you can enjoy monthly or quarterly income. As Einstein once said, “Compound interest is the eighth wonder of the world,” and dividend investing is a great way to harness that over the long term.
Do you have a favorite dividend stock on Robinhood? Let me know! Let’s focus on increasing our dividend income together.
For more wealth management resources that are mostly free, visit the Millionaire Mob blog. We’re focused on passive income and early retirement. By achieving a million rewards points and a million-dollar net worth, you can enjoy a better lifestyle. Subscribe to our newsletter for tips on travel, dividend stocks, and passive income, and join our community seeking financial freedom. What are you waiting for? Elevate your life. Sign up for our mailing list and get a free Kindle eBook!