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My $175,000 Dividend Income Portfolio

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I began investing in the stock market in early May of 2021 using a fairly substantial inheritance I received after the passing of a few family members and the addition of some of my own income and retirement savings.

By September 1st, I had invested just over $175,000 and was reaping the rewards in the form of dividend income. I am, by no means, an expert in finance and advise you to do your own research before investing your own money. This article will give people an idea of how much monthly income I make from my investments and owning certain amounts of stocks.

an-amateurs-journey-in-search-of-fire

Some people get into investing to see the growth in value of their stocks over time. In my case, I was less concerned with the price of the stocks I chose to own, than in the monthly income being generated as I did not have plans to ever sell them and make a profit from the difference in price.

Because of this, I chose stocks with a higher yield, meaning, ones that paid a higher amount per share and that paid monthly. From May to September of 2021, the overall value of the stock market was fortunate to rise around seven hundred points, so I've seen the side benefit of an increase in the combined value of my holdings as well as the generation of significant dividend income.

The Portfolio

Currently, I have just five holdings and their stock market ticker symbols are - QYLD, OPP, CLM, RIV, and ORC. Each is a monthly dividend payer, with a distribution date later in each month.

My first holding is QYLD which I've seen rise in price to $22.96 per share after an average buy-in at $21.85. Since purchase, I have made $1,329 in dividends in just under four months by using $37,823 to buy shares multiple times since May.

My largest holding, and most lucrative, is CLM with $57,999 invested. My average purchase price is $11.57 and the price has risen to $12.65 per share since I began investing. CLM also has the largest dividend yield in my portfolio by paying just over sixteen cents a share each month. By continuing to buy shares in each month, I now have nearly 5,000 shares of this company and have earned $1,884 in dividends since May 10th.

Stock ticker symbol ORC is another high yield stock (15% return per year) but with a bit more volatility than CLM. I currently have an average buy price of $5.42 and a current price of $5.12 with just over 7,600 shares ($41,324 cost). CLM's market gains more than offset ORC's losses, so I can rest easy in knowing I am getting a nice monthly income from both stocks. Since I started investing in ORC in May, I have earned $1,308 in dividend income.

My next two holdings were later additions, so I have only earned dividend income for two months in OPP and one month in RIV. OPP pays just under sixteen cents a share and I have just over 2,200 shares which costed me $34,762. In those two months, I have made $597 dollars in dividends. The price is down from $15.70 to $15.60, so if I ever did decide to sell, it would be at a loss.

For RIV, August was the first month of dividends at $81 on 479 shares and a dividend of seventeen cents a share per month. I spent $8,725 on those shares and the average price was $18.18, with the value sitting at $18.12 currently.

In summary, I have made $5,256 in dividends since May 10 and have chosen to reinvest the money back into the portfolio for now. With an investment of $176,550 since May 10, $5,256 reinvested, and an overall market increase, my portfolio now sits at $187,175.

With my current stock ownership, I am on track to earn $2,053 in dividends (see table below) in September of 2021, but do plan to add more of my inheritance money in weekly using a dollar-cost average investing strategy to increase that figure.

September Dividend Income Estimates

StockShares OwnedCostDividend/ShareMonthly Income

QYLD

1730

$39,741

.187861

$325

CLM

4993

$57,999

.1602

$800

ORC

7618

$41,324

.065

$495

OPP

2214

$34,762

.159

$352

RIV

479

$8,725

,170

$81

Total

$180,435

$2,053

using-an-inheritance-for-passive-income

I certainly plan to continue updates on my portfolio. When the next market correction hits, I plan to use that as an opportunity to invest the remaining $120,000 I have in inheritance and will update all of my holdings to show what that will mean in terms of a new monthly income amount.

In the meantime, I hope you enjoyed seeing how a person can use their money to make money on a monthly basis and thank you for reading my article.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

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