Wow! We are now finished with 3/4 of the year and we are heading into a presidential election that is causing the stock market to be significantly volatile. Stimulus packages are on hold until the debate is over and our current President states one will be released, indefinitely. The stock market has pummeled downward and then upward. Talk about unpredictable. Dividend income, though, continues to be a very hot topic, as investors await announcements, fearing the potential dividend cut.
In September, we set another record for dividend earnings and it shows proof that dividend income is one of the best passive income streams. Time to dive into my September 2020 dividend income results.
Dividend income is the fruit from the labor of investing your money in the stock market. Further, dividend income is my primary vehicle on the road to financial freedom, which you can see through my Dividend Portfolio.
How do I research and screen for dividend stocks prior to making a purchase? I use our Dividend Diplomat Stock Screener and trade on Ally’s investment platform (one of our Financial Freedom products) – commission free.
I also automatically invest and max out, pre-tax, my 401k through work and my Health Savings Account. This allows me to save a TON of money on taxes (aka thousands), which allows me to invest even more. In addition, all dividends I receive are automatically being reinvested back into the company that paid the dividend. This takes the emotion out of timing the market.
Growing your dividend income takes time and consistency. Investing as often, and early, as you can allows compound interest (aka dividends) to work its magic. I have gone from making $2.70 in a single month in dividend income to well over $3,500+ in a single month. That dividend