What we’re not going to do is downplay dividends.
Never have. Never will.
Another round landed last month. It’s the fewest number of companies I’ve ever received dividends from, but that’s exactly as planned.
After three years of trial-and-error investing and more than a year spent trimming the fat, my portfolios are finally lean and intentional. Fewer positions. Smarter allocations. Every payout pulls more weight.
I’m earning dividends in a sharper, more streamlined way — and the total just keeps growing.
This time around, I earned $342.17 in dividends across my Roth and taxable accounts.
Those payouts pushed my lifetime dividend total to $4,041.81 in my Roth and $1,511.12 in my taxable account.
My trusted strategy isn’t as flashy as stock-picking, but it’s far more efficient.
I sold all my individual stock positions in my taxable account. Rather than spreading my money thin, I’m invested in the Vanguard Total Stock Market ETF (VTI).
Inside my Roth, it’s the mutual fund version, VTSAX. Beyond that, just one individual dividend-paying company and one REIT remain.
By consolidating my investments into index funds, I’m reducing risk through broad diversification, lowering costs and complexity and accelerating growth with faster compounding.
We’re also continuing to reinvest all dividends. That’s where my excitement lies.
In both my Roth and my daughter Parker’s custodial account, our dividend payouts are now buying an additional share — or more — every three months. In other words, the snowball has started to roll.
And today marks a milestone: Parker’s three-year investing anniversary. Her lifetime dividend total? $1,409.17.
Every dollar counts, and with time on our side, even a small amount can grow into a quiet fortune.
Parker’s just getting started, and she’s already building the habits I wish I had learned much earlier.
Looking back, I’ve made my share of mistakes. But each one taught me something that’s shaped how I invest today.
If I had the chance to start over, here are three things I’d do differently from the jump.
💸 Start with tax-free investing
I’d prioritize maxing out my Roth IRA from day one. The tax-free compounding is powerful, and you don’t realize how valuable it is until you start seeing those dividends hit without Uncle Sam taking a cut.
💸 Dump it all into one index fund
No need to overthink it. A total market index fund like VTSAX or VTI gets you instant diversification, low fees and exposure to long-term market growth. I wasted too much time tinkering with individual stocks and sector bets. Simplicity wins.
💸 Don’t be so reluctant to take profits.
“Hold forever” is a solid mindset — until it isn’t. Sometimes the smarter move is to tap into gains when it’s warranted. I used to think selling meant I was giving up on long-term growth, but in reality, taking profits can unlock opportunities, reduce risk or support real-life goals. The key is knowing the difference between selling out and cashing in with purpose.
I didn’t start early, but I started with intention. And I’ve stayed consistent.
That’s what matters. Every dividend, every reinvested dollar, every simplified decision is part of a bigger shift: building a portfolio that actually reflects my values and long-term goals.
It’s not flashy. It’s not complicated.
But it’s working.
It's dividend time!
This one’s hard to write because it means admitting — publicly — that I was wrong.
It's dividend time!
Since my last portfolio update, I’ve sold three more dividend stocks from my taxable brokerage account.
I have yet to take significant profits. Planning a trip next year and may finally do that! Good perspective
There's so much to love about dividend stocks, not just the returns and the compounded value, but also the relative stability of dividend payers over time. You've taught Parker something so important!