Recently, I was talking to a few friends about building Passive Income with rental properties, I thought of several different ideas and one of them that stuck out to me was building a Dividend Portfolio. It must have been all the years of reading Dividend Growth Investing (DGI) articles and have seen them build a new stream of income. I decided to be a DGI investor and construct my own DGI portfolio that will build passive income for life.
I want to start with a nice even number to keep a clean record of my start position. I decided that the starting portfolio size should be $100,000. I took advantage of several things to help me build up this capital. First I took about a $40,000 loan at 0% APR from my HSBC credit card (link). Then I will come up with the rest of the fund by liquidating all my other investments and transferring all my savings to this Dividend Portfolio.
Deposits and withdrawals for this portfolio shall be made in increments of $50,000. A nice round number.
Picking Dividend Stocks
I have done research on many dividend stocks and selected the ones that I think are good value today, pay a steady dividend and will have dividend growth and capital appreciation.
I have always been big on passive income. I think building a stream or multiple streams of passive income is a good way to achieve financial freedom. My goal for this Dividend Portfolio is to build a stable and steady stream of income for the long term. My goal is to build an average monthly dividend income of $2,000 per month by 2020, assuming there is no additional funds from the initial capital. That’s an aggressive goal but I want to set this high goal because I need to make up the time and money I have lost in bad investments from the past.
I have decided to keep track of this Dividend Portfolio publicly on this site and hopefully help others see the power of DGI for passive income. I will also be discussing the different Dividend Stocks that I may buy or sell. Feel free to join the discussions especially if you are already a DGI.
This article is all based on my opinions and views of the author. The author does not make recommendations on stocks or raising capital. If you need professional financial advice, please seek your financial adviser.