How Much Passive Income From $71,000 In Dividend Stocks?

TL;DR

The $71,000 dividend-stock portfolio generates $1,783.25 in annual passive income at an overall yield of 2.5%. After investing $8,500 in May, the creator reduced contributions to $500 per week because the market had recovered quickly, while dividends remain reinvested. Read on for the portfolio’s dividend payments, strongest holdings, and recent sales.

Transcript

alright guys so what I went ahead and did here is made this spreadsheet which will allow me to keep track of how much passive income my dividend portfolio is going to make based on the current dividend yield and the number of shares that I own now before I get into this guys I want to just jump over to my m1 finance portfolio and provide you with a... Read More

Key Insights

• 🔬 Market pessimism led the creator to invest heavily in their dividend portfolio, but the quick recovery has made them skeptical about investing large sums.
• 🚱 The creator sold non-dividend-paying stocks to rebalance the portfolio and avoid being overweight in the airline industry.
• 🎭 Lowe's, Boeing, Emerson Electric, and GPC Genuine Parts Company are the best-performing stocks in the portfolio.
• ❤️‍🩹 General Electric has been a poor investment so far, but the creator plans to reevaluate their position at the end of the year.

Questions & Answers

Q: How much passive income does $71,000 in dividend stocks generate?

The portfolio generates $1,783.25 per year in passive dividend income. Its overall dividend yield is 2.5%.

Q: What dividends did the portfolio receive in May?

The creator received $20.62 from Lowe’s on May 6 and $5.66 from Apple on May 14. Those were the portfolio’s only dividend payments mentioned for May.

Q: How much did the creator invest in the dividend portfolio during May?

The creator invested $8,500 during May. The contributions were $2,500 each on May 4, May 11, and May 18, followed by $1,000 on May 26.

Q: Why did the creator reduce weekly portfolio contributions?

The creator reduced contributions to $500 per week after the stock market recovered quickly. Prices no longer appeared as attractive as they had during the earlier period of market pessimism.

Q: What is the creator’s contribution plan for reaching a $100,000 portfolio?

The creator plans to contribute $500 per week, or $2,000 per month. With additional contributions and potential asset appreciation, the creator believed the portfolio could reach $100,000 by the end of 2020.

Q: Why did the creator sell American Airlines and Delta Airlines?

The creator was already heavily invested in the airline-focused Jets ETF and felt overweight in the airline industry. Because American Airlines and Delta Airlines were not paying dividends, about $5,800 of those shares was sold and redistributed among dividend-paying holdings.

Q: How did the creator’s investment in the Jets ETF perform?

The creator bought Jets ETF shares for roughly $12 to $13 each during a period of heavy market pessimism. After the fund rose rapidly, the creator sold part of the position and took some profits because the move did not seem sustainable.

Q: Which stocks were the portfolio’s strongest and weakest performers?

Lowe’s, Boeing, Emerson Electric, and GPC Genuine Parts Company were identified among the best-performing stocks. General Electric was described as the creator’s worst investment, with plans to reassess the position at the end of the year.

Summary & Key Takeaways

• The creator invested $8,500 in May, but has now reduced contributions to $500 per week due to the stock market's quick recovery.

• The creator sold off non-dividend-paying stocks to avoid overweighting the airline industry in the portfolio.

• The portfolio has performed well, with stocks like Lowe's and Emerson Electric showing significant gains, resulting in a total annual passive income of $1,783.25.