DIVIDEND STOCK PORTFOLIO: $212.70/mo in Passive Income!

TL;DR

The creator discusses utilizing M1 Borrow to borrow money and invest in their dividend portfolio, providing updates on their portfolio's performance and earnings.

Transcript

so in this video today we're going to be doing an update on my $100,000 m1 finance dividend portfolio now for those who have tuned in for all the episodes you're probably wondering why my balance is so much higher this month then it was the previous month and no it is not all from capital gains and dividends I wish it was it is actually me taking a... Read More

Key Insights

• 👻 M1 Borrow allows users to borrow money using their investment portfolio as collateral at a low interest rate.
• 👶 The creator has added three new stocks to their dividend portfolio: Intel, Merck & Company, and McDonald's Corporation.
• ❓ Dividends earned from the portfolio are automatically reinvested across the entire portfolio.
• 😘 The creator believes the potential for arbitrage exists by borrowing at a low interest rate and earning higher dividends through their dividend stocks.
• 😃 The portfolio has seen capital gains, with Lowe's being the biggest winner and General Electric being the worst performer.
• 🌱 The creator plans to continue updating the portfolio and may increase the goal to a quarter million dollar dividend stock portfolio.

Questions & Answers

Q: What is M1 Borrow and how does it work?

M1 Borrow is a feature on M1 Finance that allows users to borrow money using their investment portfolio as collateral. Users can borrow up to 35% of their portfolio's value at a low interest rate.

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

The creator sold these shares because they were overweight in the airline industry and these stocks were not paying dividends. The proceeds were reinvested in dividend stocks.

Q: How does the creator earn passive income from their dividend portfolio?

The creator earns passive income through dividends, which are automatically reinvested in their portfolio. They provide a breakdown of their dividend earnings for June and July in the video.

Q: What is the risk associated with borrowing money through M1 Borrow?

If the value of the portfolio significantly decreases, it could lead to a maintenance call where the borrower has to deposit more funds or risk having their securities sold. However, the creator believes the risk is low due to the diversified nature of their dividend stocks.

Summary & Key Takeaways

• The creator has borrowed money using M1 Borrow to invest in their $100,000 dividend portfolio on M1 Finance.

• They have added three new stocks to their portfolio: Intel, Merck & Company, and McDonald's Corporation.

• The creator shares their dividend earnings for June and July and explains how dividends are automatically reinvested.