How To Build a Dividend Portfolio so you NEVER have to WORK again Dividend Investing Stocks
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Today we discuss dividend stocks and how to build massive wealth through dividend investing. If you treat dividend investing properly you can build up enough wealth that you would never have to even work again. Some people may dream of living life on their own terms but very few accomplish it. I can tell you it is definitely possible to retire very young if you load up on great dividend stocks year after year and stay disciplined throughout the process.
Dividend investing may not be for everyone and that I understand. I personally own some dividend stocks in 2019, but not that many. I personally prefer growth/value stocks to straight dividend stocks. No one can discredit how powerful dividends really are though and how much wealth can be gained by owning them.
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Well, good day subscribers Hope you guys are having a great day out there, I want you to take a moment with me take a moment with me. And imagine this scenario, imagine a scenario where you wake up in the morning and you don’t go to work because you have to you go to work because you want to or you don’t go to work because you don’t want to.
And the reason being, the reason you can make this decision is because you have enough money that is constantly building you more money through dividend stocks, literally, you can pay all of your bills with just dividend money that is constantly coming in. That is a scenario for some folks out there.
I’m going to teach you guys exactly how to do this step by step here today how to actually make a living from just dividend income, which dividend income essentially, is money that’s paid out to you from different stocks out there. Okay, so like, let’s imagine like Coca Cola, right?
Coca Cola is a stock you can buy, okay, like any individual out there can buy Coca Cola stock, Coca Cola pays dividends every three months, you can go ahead and take that money, and you can reinvest that money into more stocks, or you can use that money to spend on things out there. Okay. So that’s what a dividend is.
And literally, there are people that they make so much dividend money that they don’t have to work a normal job or something like that. And that might be an ambition of yours out there. So if that is, I want to at least teach you guys how to get there. Okay, so you so work can be more of a decision you do, rather than something you have to do.
Okay, so here’s how I kind of think about it. All right, you need to be making if you’re single person, you need to be making around 50k pre tax roughly, you know, maybe you can go down to 40k pre tax somewhere around there, which will leave you about 40k post tax from dividends alone, and you can live in 98 plus percent of the world.
Okay, there are certain areas, you might not be able to make it on that much money like Manhattan 40k is probably not going to be enough straight up. If you live in San Francisco or Monaco, or certain areas like like 40k, you know, basically after taxes will probably not be enough to live a nice lifestyle.
But in 98% of the world, you can live a nice lifestyle on 40k. If you have a family, maybe somewhere around 60k, roughly pre tax that leaves you with about 50k or so a post tax after your basically you pay your taxes on your dividends. Once again, 98 plus percent of the world, you can live a decent lifestyle.
Now you’re not gonna be a flashy lifestyle, but you can live a decent lifestyle and not even have to work okay, 98% of the world, which is a pretty amazing thing. And that is definitely achievable. And there are definitely people that have achieved that.
Okay, so what I want to go through is what do you actually need, what are the five things you need to be able to pull something like this off, and then we’ll start getting into the mechanics and how you actually do this, guys, I hope you really enjoy this video, make sure you hit the thumbs up, and let’s start getting into it are you guys the first thing you are going to need, the first thing that is necessary is you need to have some sort of savings.
Okay, doesn’t have to be a lot of money, you don’t have to have like $100,000 saved or a million dollars saved or something like that in a bank account. No, you just need to have some money saved, it could be 1000 bucks, it could be a few $1,000 that you have kind of saved away that you are ready to invest that money and start building that money into more and more money through dividend stocks.
Okay, you have to have some sort of money, otherwise, it’s not an investment, right. In order to be an investment, you have to have some money that you funnel into something that can hopefully build you more and more money. So you have to have some sort of savings, I hope you guys do have some sort of savings.
If you are watching this, and you have literally no savings right now you don’t have like even like a few $100 to your name, okay, you need to either get a better job or get a job period, maybe you don’t have one yet, you could start a side income project. I mean, search up passive income ideas have so many ideas.
Or you might be in a situation where you have a job, you just aren’t being able to basically funnel enough money into like a savings account or something like that to kind of build savings. And then you got to kind of look at your expenses and say, What can I do to get my expenses down? Or you can look at your income and say.
What can I do to make my next move to you know, get a job that pays better than what this one pays? or do something like how do I start a side project over here a side income stream or something like that, you got to either fixed income or you got to fix the expenses is one or the other. And it’s different for different people.
Some people have really big incomes, and they spent all their money, they never have any money for investing, because they even only make, let’s say $10,000 a month or 20,000 or whatever, they never have any money to invest just because they’re spending it all you don’t ever want to be in those situations.
So you need to have some savings. Okay, that’s number one. It’s gonna number two already guys, the second thing you have to have to make this work is you have to have a situation where you have at least a few $100, if not 1000 plus dollars each month that you’re able to funnel into stocks to build more and more dividend income, okay?
It can’t just be you know, you put in some money at first, and then there’s no money being funneled in and so you’re just building off of what’s coming in for dividends, that’s going to slow things down in a massive, massive way. You want to speed up the process really fast.
Make sure you’re in a situation where you have at least a couple 100 bucks, if not 1000 plus dollars each month that you can funnel into building more and more dividend money. Compounding is absolutely an amazing thing. Okay, as the snowball gets rolling, it gets to be bigger and bigger and bigger and bigger with the bigger amounts of money, okay?
So if you can speed up the process by putting at least a few $100 or 1000 plus dollars into your brokerage account each month and building the dividend stocks bigger and bigger, it’s going to help so dramatically in the speed, the time it takes to achieve what you want to achieve. It’s going to happen so much faster, guys, this is so key.
And once again, if you’re not in that situation, that’s fine. You’ve got to figure out do you have an income problem? Or do you have an expense problem, it is one of those two problems at the end of the day, some people it’s both problems, they are making enough money. And on the expense side, they’re racking up debt and things like that.
Okay. Which brings me to one other real quick point I’ll make, which is make sure you guys are staying out of debt. Because if you’re racking up a lot of debt, especially if you don’t know what you’re doing with it, like it’s gonna hurt you really bad. You’re racking up debt at 18% interest rate, how you ever going to build money because you’re paying that interest rate constantly.
Okay, so that’s number two, let’s get to number three, are you guys the number three thing you’re going to need is you’re going to need to know how to pick stocks decently Okay, you don’t need to be the world’s best stock picker out there. You don’t need to be absolutely killing the market.
And oh, my gosh, you’re outperforming you just need to be like a decent stock picker, you need to know all the things to look for in stocks. Okay, now I have a course linked in the description that goes into everything I look for in a stock I’ve been in the stock market for over 10 years, that will save you 10 years of experience basically, in one course you can learn from if you binge watching a day or two.
Okay, but if you don’t have the capital to you know, afford a course like that there are tons and tons of books out there you can read, go to your local library, start reading books, it’s gonna take you a long time to kind of get all the knowledge because you’re gonna have to pull from a lot of different places, there’s not really just like one book.
I can point out and say that book, it covers everything you need to know, there are a lot of good books, intelligent investors, a good book, but there’s no one specific book out there, I can say that books gonna tell you everything you need to know, it’s just doesn’t work that way, guys.
So you’re gonna have to learn how to pick stocks, that’s gonna take you some time, okay, depending on which route you kind of go, it could take you many months to learn the information, you know, it could take you honestly years to get to the place where you know how to be at least a decent stock picker out there that you can kind of perform with the markets.
Okay, so that’s the number three thing you’re going to need. Let’s get into number four, the number four thing you’re going to need, if you want to build a dividend portfolio that you never have to work again, is you’re going to need time on your side. Okay, this is a very, very key thing. And this isn’t going to be as much fun.
If you’re like, let’s say 45 plus years old, and you’re watching this video right now, there’s a lot more fun if you’re someone that’s watching this video, and you’re under the age of 30 right now, because I can tell you if time is on your side, the compounding numbers get to become so much easier.
If you have time on your side and how you can start to build the money and start to build out these dividend stock positions, just very, very small positions to over 10 year span, 15 year span 20 year span to absolutely massive position. So you absolutely have to have time on your side.
It’s a really hard thing to pull off if you’re 45 plus years old, and you can pull it off, but you’ll need a bigger amount of money to start off with or you’ll need a lot more money to fall in stocks. Or you’ll just be in a position where you know, you don’t get to that place where you have enough dividend income to maybe like you’re 70 years old or so rather than Imagine if you’re 20.
And you start this, probably by the time you’re probably 4045, you have enough money coming in constantly from dividends, that literally you don’t even need to work anymore by the time you’re 40. And you can do what you want at that point in time. Okay, so definitely guys.
I cannot reiterate this enough time has to be on your side to really make this work in the full retrospect that you can have success in this guy’s while you’re young. And it’s like, I mean, imagine you’re 40 and you don’t have to work anymore. That’s real cool.
I mean, you’re 75 You don’t have to work anymore. Well, that’s what is expected. Right? You’re 45 and you don’t have to work anymore. That’s a really cool thing, guys, let’s get into the last one, number five, and then we’ll get into the mechanics number five, the last one.
So vital guys, it’s discipline, if you’re going to pull off something like this, that’s going to take you 10 1520 years to pull off, you need a lot of discipline, you need a lot of focus on the long term, you can’t get thrown off and start buying stocks that are maybe growth stocks or something like that.
Like if you’re trying to build a massive dividend portfolio then you need to stick to great dividend stocks you need to limit as much risk as possible in these scenarios. Okay, now it’s not just discipline within the stock market, it’s discipline out of the stock market. We talked about debt just a minute ago right?
Making sure you’re not taking out a ton of debt because guess what, if you’re taking on a ton of debt, and you’re you’re buying a new flat screen with that or something like that, right or a new couch and you’re taking all this debt, you’re not gonna ever be able to funnel a lot of money into stocks it’s gonna slow you way down it’s undisciplined moves, right things like having health insurance could also be a disciplined move.
I mean, imagine you have something happened to you essentially bad right health related and you don’t have health insurance, guess where you have to pull money out of you’re probably gonna have to pull it out of your dividend portfolio. So the vast amount of staying disciplined in retrospect of like what’s going on in your everyday life as well as what’s going on inside that dividend portfolio guys.
If you’re going to pull a move like this off, Okay, now let’s start getting into the mechanics on how you actually pull this off already. Guys. Now that we’ve talked a bit about like what you need to pull something like this off, we got we got to talk about the mechanics on How like how to actually do this?
Okay, so let’s assume in the scenario, you’ve got, like $5,000 socked away in savings, okay, you need to basically open up a brokerage account, I if you have smaller amounts of money, I would usually suggest like Robin Hood because it’s free to place your trade.
So you don’t have to pay that commission every time to buy and sell stock, like a lot of other brokerages out there. Okay. So that would usually make sense for most folks out there, you put the 5000 in, you know, obviously, make sure you’re comfortable investing, make sure you know everything to look forward and stock and make sure you’ve actually done your research before you ever buy or sell stocks, okay?
Otherwise, you’ll end up selling really bad prices, you’ll make a lot of bad decisions, if you don’t know what you’re doing. Okay, so you put your $5,000 into some dividend stocks, you know, a few out there, you know, maybe two stocks, three stocks, maybe up to five stocks.
If it’s a $5,000, you could always do something like put 1000 each one, okay, so one year is gonna go by roughly you’ll receive around roughly $200 depending on the dividend yields, if you go super high yield, you could get a lot more than $200 in dividends. But that might be a little more dangerous.
If you go low yield, you might get less than $200, it really depends on what you’re looking for. If you’re looking for super high yielders, I always suggest kind of looking for the dividend stocks that you believe in the most for the long term, because those are ones are going to be able to up their dividends likely for years and years in the future rather than just somebody.
That’s making a lot of money right now and paying out a huge payout ratio or something like that. And then as we spoke about, you got to always make sure you’re funneling money into your accounts. So somewhere around $1,000 each month funneled into that account.
I feel like a lot of people out there could pull this off, it’s just you got to focus on the income and you got to focus on the expenses, one of the two or focus on bulking those expenses down and getting your income up $1,000 a month put toward dividend stocks is certainly possible.
I used to do it a quick trip all the time, I used to do more than $1,000. I wasn’t doing it just for dividend stocks, I was doing it towards stocks in general. And that was just an average job making 50 you know, 60k a year essentially. And I was able to put at least $1,000 a month towards stock some months even up to 2000 plus dollars towards stocks. Okay, and that was with paying bills.
Now, that’s gonna leave you after year one with about $17,200 in those dividend stocks, okay, your two goes by now you’re going to receive about $800 in dividends roughly depending on the yields. Why because you’re generally the yields are going to go up.
So if you buy stock, ABC, and it pays, let’s say 3.9% yield right now, you know, let’s say in dollar amounts, let’s say that stock pays 50 cents a share right now, that’s a great dividend company, they’re more likely going to update dividend each and every year.
So if it’s paying 50 cents, this past year, more likely this upcoming year, they’re gonna bump that up to maybe 52 cents or 54 cents a share, okay, because most of these great dividend companies, they upped their dividends each and every year.
So what was an old dividend of 50 cents might now be 54 cents, which might be in a year from now or you know, let’s say 10 years in the future, let’s go 10 years in the future might be $1 a share and then at that point in time, okay, so yields gonna get bigger Also, your amount of money you have invested in these dividend stocks is a much bigger amount.
So the amount you’re gonna receive in dividends going to be more substantial. So about 800 bucks received, you put another $1,000 per month toward do dividend stocks or old dividend stocks, it depends on what you want to go after. If you want to lower cost based on stocks. That’s always a great thing.
If it’s a great company out there, okay, you there was plenty of discounts. Okay. So now after year two, you have $30,000 in dividend stocks after two years, okay, so you went from not much to a lot and basically a two year span. Now going into year three, you’re going to receive 15 $100 just in dividends now at this point, okay?
$1,500, just in year three, now imagine how much you’re going to be receiving in dividends, 10 years down the road, 20 years down the road, like we can keep working out this chart and you get, you’ll see, like, the numbers get really large.
I mean, if you’re when you get down to like your 30 or so you’re looking at, you know, $50,000 or so, you know, 40 to $50,000 getting paid out to you just in the form of dividends. Now, imagine you started when you were 20 You know, when you’re 50 years old, and you’re receiving 4050, maybe even more than $50,000 a year, just in dividend income guys, this is how substantial amounts of money can get.
And you can see like like that is definitely possible to just invest your way through dividend stocks to basically get a huge income and then just you know, have a situation where you don’t even have to work or something like that. Keep in mind, you know, any of these numbers, these dividend yields and the amount of money paid, you know.
If you hold it like imagine somebody buying into, let’s say somebody bought into Coca Cola stock 25 years ago, the dividend was minuscule to now I mean the dividends probably 10x plus in that amount of time, but yet what they bought the stock at was super low, right?
Think about like a Procter and Gamble what Procter and Gamble was paying for dividends, you know, 25 years ago was a very small amount compared to now did Apple for instance, Apple didn’t even pay dividends up until about six or seven years ago.
So if you imagine buying Apple stock, you know, prior to that period, you weren’t even getting a dividend. Now you’re getting this big dividend. Imagine how much Apple is going to be paying in dividend money out to their shareholders in the future. Okay.
So that’s something to take into account that and not now A lot of people think about it’s just the mere fact that these companies that are great dividend payers consistently keep upping those dividends. So you might have used to get a 5% yield but now you actually get like a 25% yield from where you bought that stock at because the dividend money is so much and it’s coming in so fast guys.
So that’s something to think about there. It is definitely possible you can definitely pull it off if it’s something you want to do guys. So I hope you enjoyed this today. Make sure if you are got that course in the past by becoming Master stockmar course check that out.
There’s a new dividend investing mastery section in that course, which is linked down there in the description. We got a discount going on today guys, thank you for watching, and have a great day.