It’s all about the dividends when it comes to top ideas for passive income. Here at Shake the Money Tree, it is no different…I am looking to grow a sizable dividend portfolio that provides a nice stream of passive income.
What is a Dividend?
A dividend is the distribution of some of a company’s earnings to a class of its shareholders, as determined by the company’s board of directors. Common shareholders of dividend-paying companies are typically eligible as long as they own the stock before the ex-dividend date. Dividends may be paid out as cash or in the form of additional stock.
Dividend Payout and Yield
1. Dividend Payout ratio is simply determined by the formula cash dividends per share divided by earning per share.
2. Dividend Yield shows the relationship between cash dividends paid and the market price per share.
STMT Dividend Portfolio
The creation of the STMT dividend portfolio is grounded with the SPHD ETF. I am currently at 86 shares, working towards the 100 shares of SPHD goal. Thru October 2020, I have invested around $3,155 with my purchases starting back in September 2019. I have received $96.44 in cumulative cash dividends to date, with ~$12/month in dividend income. The annualized dividend yield is around 4.6% when using the total invested dollars and climbs to over +5% when accounting for the current market price. Here is a summary of where the STMT dividend portfolio as of today:
I am a finance professional with over 20 years of experience and very passionate about all topics related to finance; enjoying the aspect of teaching and educating others along the way. All in all, I will show you how big this money tree can get over time as I get the branches (Earn, Save, Invest) as high as possible…Click here to see my financial progress to date: How high is the Money Tree?
