Dividend income

by Datsun Li
(Hong Kong)

I'd just love to know what stocks were in the portfolio and what was the value of it that had you arrive at the over 100K dividend mark? This income is described on your about us page. Thank you.

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Sep 18, 2019
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Dividend Income
by: Mike

Hello Datsun,

The first year I hit that $100k mark, the yield on the portfolio was very high. This was due to the purchase of some very cheap stocks (like financial companies, insurers etc) that were trading on very low multiples at the time. It was supplemented as well by some special dividends and small companies doing some capital returns. The yield that year on the portfolio was around 7.5%.

The yield has dropped a little since then but luckily I've reinvested almost everything so the cash income remains good. There are thousands of companies out there in many different sectors that are paying excellent and sustainable dividends. Diversifying is important because the odd investment can (and almost certain will!) go wrong. You can recover, though, if you have a wide range of stocks that "drown you in cash" as Charlie Munger would say.

We don't give individual advice for what stocks or investments to purchase. We want to empower you to make those decisions on an informed basis. We try to help to inform. We do, however, encourage you to look for a collection of high quality investments and try to remember the quote from Ben Franklin "The bitterness of poor quality remains long after the sweetness of low price is forgotten".

Good luck!

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