I want to explain why I do a quarterly dividend update.
- Track how much dividends I make
- Prove that anyone can become a millionaire
- Prove that FIRE works
Dividend Investing
I’m by no means a Die Hard Dividend Investor. Yet my simple investing strategy does net me dividends that I just have reinvested to build me more dividends and wealth. It’s honestly the perfect cycle to Freedom. I have seen a few people track their dividends over the years and thought why the hell not? It sounds like it would be fun to see how these grow over the years.
The Break Down
Here is what funds and the dividends I have received from them.
Taxable Account Vanguard
- VTSAX $461
Roth IRA Vanguard
- VTSAX $173
Total $634
That is a -$15 loss in dividends since last quarter’s dividend update was $649.
2020 Dividend Total $1,736
The After Math
So for quarter three, I saw a slight decrease in my dividend payouts! So what the Hell Gives? Well as you might have noticed I decided to simplify the overall allocation of my portfolio. Before I was heavily tilting to small-cap value, value, and REIT in my Roth IRA. Now I am 100% VTSAX in the ROTH IRA. This is where that decrease in dividends accrued. My taxable account almost increased by $100 in dividends. I did this again to keep things simple. No more having to readjust my assets every year or 6 months. Also, it makes for a smoother ride. Now the downside to this is they can lower these dividend payouts as well. This is why I would never focus on a dividend as my investing strategy. Instead, I focus on owning every traded company in the market. This way I take the guesswork out and let them do the heavy lifting for me.
Overall not a bad dividend payout so far for 2020 for a guy not focused on the dividends. Of course, I have these dividends reinvested to buy me more shares which in return will increase my payout for the 4th and last quarter of 2020. Will dividends ever make me wealthy? No, yet I love the free money and at the same time capturing the entire market in my returns!
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