It’s great being a dividend investor. Ever wake up one day and wish you could take the day off and still get paid? That’s the feeling most dividend investors have when they get their dividends.
The great John D. Rockefeller once famously said “the only thing that gives me pleasure is to see my dividends coming in.”
There really is no greater feeling than getting money for doing absolutely nothing. That’s why building a portfolio of quality dividend stocks is literally like growing your very own money tree.
I tell people that my investments produce income on their own; they work in place of me. That’s important because I don’t have to work that money. For that very reason, I find that I value my passive dividend income much more than I do my actual paycheque from my job.
The way I see it, as long as you trade your time for money you’ll always be dependent on someone else for income and never be financially free.
I look at it like this: you can be a worker, or you can be an owner. A worker will always have to trade his time for money, while an owner gets paid simply by owning a piece of a profitable business.
That’s why I’m building an investment portfolio of quality dividend stocks. While the value of the portfolio will rise and fall with the ebb and flow of the broader stock market, the income it produces should continually grow over time.
A Dividend Investor Has 3 Big Advantages
3 things contribute to the income growth in the portfolio:
1. Adding fresh capital each month from my own paycheque to buy more dividend stocks. This is what it means to “Pay Yourself First.”
2. Re-investing dividends. This is the cash generated from the portfolio. This is basically money making even more money for me.
3. And my favorite…dividend increases. I’m always teasing my wife about how “I just got a raise.” At least once a year my companies increase their dividend payment. I’d say the increase ranges anywhere from 3% to 7% per year, on average.
Buying Dividend Stocks Automatically
Now you may be thinking that all this sounds pretty good right? Have I mentioned that the majority of my investments are set on auto-pilot?
That’s right, I don’t have to do a thing to keep this going. I set it up so everything happens automatically.
Money is taken from my bank account each month and is invested in a collection of dividend stocks, exchange-traded funds (ETFs) and low-cost index funds.
I don’t have to do a thing except occasionally increasing the amount of money that I invest. This system ensures that I will reliably and consistently grow my dividend income each and every month.
Focus on the Dividend Income Not the Ups and Downs of Mr. Market
Some people think that investing requires a lot of time and effort. In my experience though, nothing could be further from the truth.
In fact, over the years that I’ve been investing, I’ve found that it’s better just to leave your investments alone. I don’t follow them on a day-to-day basis because I don’t care about their daily price fluctuations. All I focus on instead, is increasing my passive dividend income.
Thanks for reading this article on why it pays to be a dividend investor. This is a strategy that really does work. Check out my monthly Dividend Income Reports for more information.
Are you ready to experience the joy of being a dividend investor?
Steve Ancil
Tuesday 5th of September 2017
Awesome article....jus came across your blog and enjoying your articles, very informative for a somewhat newbie, thanks 👍🏽
GenXinvestor
Tuesday 5th of September 2017
Thanks Steve, I hope these articles are helpful and informative. Cheers!
eric
Tuesday 4th of August 2015
Great website. Lots of helpful info.
Thoughts on CPD? price is way down, yield very interesting. I hold a position and wondering your thoughts on timing for averaging down?
Thx eric
GenXinvestor
Wednesday 5th of August 2015
Thanks for the comment Eric. I've actually been thinking about adding to my CPD and I continue to reinvest the monthly dividend. You're right it got beat up quite a bit this year. In my opinion, the damage is already done and since I'm a long term investor I continue to hold CPD as part of my fixed income.
JC
Saturday 11th of July 2015
It's great not having to work and still get paid. There's not too many things that are better than that. Well, getting a raise and not having to work is one of them. I really love the DGI strategy because it's very simple and straightforward.
GenXinvestor
Saturday 11th of July 2015
Thanks for the comment. What I like about most about the DGI strategy is that through my dividend income reports I can actually see the year over year progress. This is one investing strategy that I'll be sticking with!