- Do you know, the only
thing that gives me pleasure? It's to see my dividends coming in. So here's the thing about passive income. Everybody out there including myself has been lying to you, kind of. And what I mean by that is
there's only a few forms of truly passive income out there where you literally do absolutely nothing yet continue to earn money day
after day, week after week, month after month. And so previously, when we've talked about different passive income
ideas on this channel some of them still do involve
your time in some way. And while this is technically
not passive income, a lot of people do lump
it into this category, including myself. But what I wanna talk about today is my favorite form of
truly passive income where I literally do
nothing to earn this money and that is passive income
earned from dividend stocks. Now if you're not familiar guys, dividends are regular
payments from companies that you own shares of. For example, Coca-Cola
pays a quarterly dividend to their shareholders as
a means of sharing profits with investors. So earlier this year, I had
this goal of building up a $100,000 dividend stock
portfolio utilizing M1 Finance and I've built it up now
to just over $160,000. So I thought it would be cool
to go through this portfolio and show you guys how much passive income these dividend stocks are earning. Now, as far as the brokerage goes, I picked M1 Finance for
a couple of reasons. First of all, they have a portfolio level
dividend reinvestment. So rather than taking these dividends and buying useless stuff with them, I actually re-invest them in
order to earn compound interest and M1 Finance allows you
to do this automatically. Second of all, it's
totally commission-free. So you're not paying any
commissions to your brokerage. Third of all, they offer fractional shares so you can remain fully invested. And finally, the auto rebalancing feature will basically look at
your portfolio as a whole. You set your percentages and as new money is added to
that portfolio from your bank or from earned dividends it puts money in whatever you are low in to rebalance your entire portfolio. So if you guys at the end of this video, want to check out M1 Finance for yourself, I do have an affiliate link down below if you would like to support the channel. And I also have a completely
free 30 minute video training that shows you step-by-step how to build a dividend stock portfolio utilizing M1 Finance. Last thing, before we jump
into my portfolio guys I just have to make a
quick disclaimer here that I am not a financial advisor. This is not financial advice, and you should always do your
own research in due diligence before investing in the stock market. That being said guys, let's check out my dividend
stock portfolio now. All right guys. So here we are inside of my M1 Finance dividends stock portfolio. And quite a bit has changed
since my last portfolio update. I did hit my goal of reaching $100,000 within this portfolio. And I wasn't sure if you guys
wanted me to continue doing monthly updates of this portfolio since I'm not really adding any more money into it at this point in time. But if you guys do want
to see monthly updates on this portfolio just go ahead and drop
a like on this video and if I get a lot of
people who are interested I will continue doing monthly updates showing the progress of this portfolio. But I made a couple of huge
changes to this portfolio. And I want to go ahead and share
those with you now quickly. And then I'll get into
how much passive income this portfolio currently
earns through dividends. So, first of all, if we go
through the holdings here in this portfolio, there
are a few new additions and there is one stock in particular that is no longer in this portfolio. The first new addition here is Caterpillar which I added a couple of weeks ago. And in a very short period of time, I'm actually up around 13% in this stock, which is pretty exciting. I also added shares of
Verizon to this portfolio and Bank of America. So those three stocks are new additions to this dividend portfolio. That being said, I finally
decided to cut my losses on General Electric, and I sold my small
position in a GE stock. Now, for those of you
who are not familiar, I've been holding on to shares of General Electric since 2017. And I was down about 50% on this position. It wasn't a massive position but I did take a loss of around $5,000. But to be honest with you guys,
it was just a point in time where I felt that money
was better used elsewhere. So I sold GE stock and
that money that it sold for was reinvested across my entire portfolio. Not to mention I do have a lot of short-term
capital gains this year from some short-term moves in the market. So, taking a small capital
loss during a year like that, isn't the worst possible
move that you can make. But I decided to cut
my losses on that stock and get rid of it. Since this is a dividend portfolio, I wanted to make sure I was invested in good dividend paying stocks and General Electric is
just not one of those. And then one other change
I made to this portfolio, if you guys recall from my last update, I actually borrowed $25,000 to invest in my M1 Finance portfolio. However, I ended up taking some gains out of my growth stock portfolio and I had some cash
sitting on the sidelines. So I said, "You know what,
why don't I just pay back that M1 borrow and
basically get rid of that." So I ended up paying back the $25,000 that I had borrowed to put into
my dividend stock portfolio. But then I was thinking about
things and I realized that with M1 borrow, I'm able to
borrow at a 2% interest rate. And I currently do have
a car loan on my Mercedes that I picked up a couple
of months ago at 3.99%. So I realized I could actually
borrow against my portfolio at roughly half the interest rate and put that towards my car
loan and pay this back instead. So I did borrow 55,000
against my portfolio, but I put that towards my car loan to pay less money in interest. But all of the money
within my portfolio here this 162,000, none of
this is borrowed money at this point in time, this is all my own money invested here. So in order to be suspenseful
here, I'm gonna go ahead and do this from smallest to largest. So starting off here, the company in this portfolio that makes this smallest
amount in dividends is my shares of Apple. I have just under 79 shares and they currently pay a
dividend of 21 cents per share. So per year, that is
$64.62 of dividend income. Next up, we have Microsoft,
another big tech name here. I own about 44 shares. They pay a 56 cent dividend per piece, which is just under $100. It's $97.66 per year in dividend payments. After that we have Lowe's, which is the top
performer in my portfolio. I own 54.2 shares, they each pay a 60 cent
dividend per quarter. So annually, that is
$130.08 in dividend income from Lowe's stock. Next up we have McDonald's, which is a newer addition
to this portfolio. I bought a couple of months ago. This is 33.7 shares. They each pay a dividend of $1.29. So annually, that is $173.89
in dividends from McDonald's. Next up we have Dunkin' Brands which is another top
performer in this portfolio. And shortly here, we'll take
a look at the overall holdings and my return from this portfolio. But Dunkin Brands, I own
just under 139 shares. They each pay a 40 cent
quarterly dividend. So annually, that is $223.15 in dividends. So pretty much every time I go to Dunkin' Donuts and get my coffee, which is maybe once or twice a week, I am basically able to pay
for that with my dividends from Dunkin' Donuts stock. Next up we have Intel. This is one of the dogs
in my portfolio currently, this is 177 shares give or take. They each pay a 33 cent dividend, so annually, that is
about $234 in dividends. Next up we have a Caterpillar stock a new addition to this portfolio. I have 59.6 shares, they
each pay a dividend of $1.03. So annually, that is
$245.55 in dividend income. Next up we have Bank of America stock, another new addition here. I own 372 shares each
earns a quarterly dividend of 18 cents. So per year, that is
$267.84 in dividend income. Then we have Emerson
Electric, I own 135.4 shares. They each pay a 50 cent dividend. So that is $270.80 per
year in dividend income from Emerson Electric. Then we have Merck & Co,
I own about 113 shares, each share earns 61 cents per quarter. So that is just under $276 annually in dividends from this stock. Then we have a classic Warren
Buffet investment here, Coca-Cola, I have 185.2 shares. They each earn a 41 cent
dividend per quarter, which is over $300. It's 303.73 per year in dividend income. Then we have 3M, which has been
another lackluster performer in this portfolio. I own about 56 shares. They each pay a $1.47 in dividends. So that is 331.04 annually
in dividend income. Next up we have GPC, which
is Genuine Parts Company, the parent company of NAPA. I have just about 106 shares. They pay 79 cents per share quarterly. So that is 334.64 annually in dividends. Next we have National Grid here. I have 173.9 shares. This is actually my former employer, one of my favorite
investments for dividends because it is a boring utility investment. They pay dividends twice
per year, 1.06 per share. So in total, that is 368.67 in dividends. Then we have Verizon, which
is kind of a boring investment but the reason why I bought it, is because of the high dividend yield associated with Telecom stocks. So I have 154 shares, each earns a quarterly
dividend of 63 cents. So that is 388.08 per year
in dividends from Verizon. Second to last year, we have
Walgreens Boots Alliance. I have 250.3 shares, they each earn a quarterly
dividend of 46 cents. So that is 458.05 per
year in dividend income from Walgreens. And then lastly, the highest earning stock here in my portfolio is IBM. I have 75.1 shares that
each earn $1.63 quarterly. So per year it's almost $500. It's 489.65 per year in
dividend income from IBM. So in total guys, as far
as the passive income from this portfolio from
dividends goes annually. It is $4,657.46 which comes
out to 388.12 per month, or about $12.76 per day. Now, if you look at my
portfolio as a whole, it has a dividend yield of
about 3%, it's around 2.9, 4%, if we round up there. And I could be technically investing and earning a dividend
yield of four or even 5% on my portfolio here, but
the reason why I invest and have a slightly lower dividend yield is because I'm not only
focused on the dividends, I'm also focused on the growth
aspect of this portfolio because there's a lot of stocks out there that pay a high dividend yield but there's really no
growth potential with them. Meaning you're basically only making money from that dividend and
not from an increase in the share price. With this portfolio, I would ideally like to have a blend of income from dividends and growth from the underlying shares. So for example of couple of
stocks I own in this portfolio have a pretty low dividend yield. For example, Apple stock has
a current yield of just 0.7%. Microsoft is sitting at a 1% yield, and Lowe's is a 1.4%. However, all three of those companies have a substantial amount
of growth potential which is why we've seen a drastic increase in the share price. So on that note, let's jump
over to the holdings tab here and look at the overall
performance of this portfolio. So in total, across my
entire portfolio here, I'm up around 11.75%, which is just over
$17,000 in capital gains. So my total cost basis
here is around 145,000 and the portfolio is worth around 162. As far as the actual stocks go, you can see my biggest winners here, I'm not gonna go through all of them, but, by far Lowe's has
been my best investment, I've almost doubled my
money on that position. Dunkin' brands as well, I'm up about 35% and Apple, one of these companies with a lot of growth
potential, I'm up about 30%. And then you can see these other ones here are up a fair amount as well,
anywhere from 10 to 20%. And then let's talk about the
losers in those portfolio. My worst performer so far
is Walgreens Boots Alliance. I'm down 12%. I'm also down in IBM, I'm down
just a little bit in Verizon and a little bit in Intel as well, but the rest of the stocks
I've done pretty well in except for, you know, General Electric, which I decided to finally sell and just get out of this portfolio and just, you know, get on with my life beyond owning General Electric Stock. So anyways guys, there you have it. That's gonna wrap up this video. Like I said, if you want to
see me do monthly updates of this portfolio, just
go ahead and drop a like on this video. If enough people are interested,
I will be sure to do that. The only reason why
I'm hesitant to do that is because I don't plan
on adding any more money to this portfolio in
the foreseeable future. I'm just gonna simply take my dividends and re-invest them. But if you're still curious
about the performance over time, I would be happy to do those updates if enough people are interested. like I said, if you wanna go ahead and check out M1 finance
and support the channel there's an affiliate link down below and there's also that completely free 30 minute M1 finance training that'll help you get up
and running step by step. I'll show you exactly how to do it. If you haven't subscribed already make sure you subscribe, hit
that bell for notifications. And I hope to see you
guys in the next video. (soft music)
