Learn how this couple makes $30,000/month in dividends
Is it possible to live off dividends alone? Can dividends eventually cover your living expenses? The answer is yes and yes. This month I share with you a story of a Canadian couple earning $360,000 per year just from dividends.
$360,000/year in dividends
My friend Bob, the financial blogger from Tawcan.com, recently interviewed a couple on his site that are today earning $360,000 each year from dividends. Head on over to Bob's site to read this fascinating two-part series:
How did they do it?
The couple started with $10,000 and in 36 years have built a portfolio with a market value of over $8.5M. The couple retired in 2004 at the age of 55, during their working years they made slightly above average salaries of $110K and $90K in today's dollars. Bob writes in his post that "their investment success was built on three important factors – consistency, patience, and a modest lifestyle." The couple built their entire portfolio by investing in dividend stocks.
What they didn't do
The couple never:
- invested in mutual funds (they did a bit in the beginning but not since the 90's)
- invested in ETFs or index funds
- never bought on margin
- didn't use options
- never sold short
- never used stop loss or stop limit orders
In other words they kept their investing strategy simple.
Forget conventional wisdom
The couple ignored conventional wisdom (I call them investing myths):
- always max out your retirement accounts (RRSP)
- as you get older shift your portfolio from stocks to bonds
- dividends are insignificant, focus on growth stocks
The couple didn't sell their stocks to buy bonds, they kept it simple and focused on dividends, and today the results speak for themselves. By ignoring conventional wisdom, their portfolio today is generating $30,000 a month in dividends.
Read the complete two-part series for all the details here:
Can you do the same?
You can do the same, even if you only achieve 30% of what this couple did, you'd be looking at $108,000 per year in dividends. I designed the 12 Rules of Simply Investing to help you select quality dividend-paying stocks when they are priced low. If a company fails even one Rule you should move on to another company. These rules are designed to minimize your risk and maximize your gains for the long-term. These rules make investing easy and simple to implement. The goal is for you to build a resilient stock portfolio that will provide you with growing passive income each year, regardless of stock prices and the economy.