Building a dividend growth portfolio using Robinhood is a breeze. With commission-free trading, you can start small without feeling pressured to invest large amounts right away. I like to reinvest my dividends into more dividend-paying stocks to maximize compound interest growth.
Our February 2018 portfolio highlights our passion for dividend investing. We’ve shared many resources, including a book called “Dividend Investing Your Way to Financial Freedom,” to guide you through the truths of dividend investing. A couple of stocks in our portfolio were top performers in our Wall Street Olympics, which spotlighted the best dividend growth stocks.
Creating a portfolio takes time and patience, but it’s rewarding in the long run. I’ve been leveraging Robinhood to build passive income through dividends. With over 3 million users, Robinhood has saved users more than $1 billion in commissions, thanks to its no-fee trading. This structure has helped me gradually build a substantial portfolio without the need to purchase large volumes at once.
I’ve devised a plan to live off dividends indefinitely and even created a free dividend calculator. This tool lets you customize your plan by inputting assumptions like dividend yield, growth, contributions, and more.
In our dividend portfolio, we own 34 different stocks, each offering unique dividend yields, and this year, we’re on track to earn $549.25 in dividend income. Although I’ve concentrated on Target Corporation, which I’ll likely trim due to a 30% gain, I initially invested heavily during the “Amazon is taking over the world” panic.
Looking ahead, I’ll keep reinvesting the extra income from my online activities into my dividend portfolio. Unlike typical dividend growth stocks like achievers or aristocrats, you’ll notice some unique choices in my lineup. As someone who appreciates value investing, my main requirement for a stock is that it pays a dividend. I also maintain about 7% of my portfolio in cash for flexibility when new buying opportunities arise.
Here are some changes in my portfolio:
**Sells:**
– **Target Corp (TGT):** I’ve made a decent gain and want to reduce exposure, though I’ll keep it as it’s a Dividend Aristocrat.
– **COTY, Inc. (COTY):** After a 25% gain, I’m slightly reducing my stake but still see this as a solid long-term investment.
– **Boeing Corp (BA):** With a 110% return, I decided to sell some shares.
**Buys:**
– **Realty Income (O):** Despite rising rates and potential underperformance, I’m betting on steady rates. The selloff in REITs has prompted me to buy more. Robinhood’s platform lets me incrementally invest in pressured stocks without worry, which suits retail investors well. I’ve used evidence-based research for these transactions.
Curious about more Robinhood insights? Discover our comprehensive guide and review specific to dividend investing.
I’d love to know what stocks you might buy or sell for dividend growth. Have you crafted a dividend portfolio to generate passive income? Share your thoughts in the comments! If you like this content, stay updated on dividend growth investing by subscribing to our newsletter.