In June 2010, I started building the Daily Dividend Investor Portfolio (DDI for short) with $108,000.00. The goal was to create a portfolio of income producing stocks that would be held indefinitely (long term) with an emphasis on income over capital appreciation. Later that year in November, I began writing this blog to track my progress towards creating an ever increasing automatic cash generating machine. My first goal is to reach $500.00 / month in passive income ($6000/year). Based on my initial capital investment the portfolio will need to target an annual return of 5.5%
In the near-term, my strategy will be to take all of the cash flow dividends from the portfolio and reinvest them as quickly as possible into additional stocks that will themselves pay out increasing dividend income. By continually adding new positions, my intent is to diversify the portfolio among several investment sectors as well as to spread out and increase the number of days per month that dividends are paid.
Ideally, the Daily Dividend Portfolio (DDI) would generate some amount of cash flow every day of the month, creating a true money making machine. Ultimately that isn’t possible as dividends aren’t paid/credited to the brokerage account on weekends and holidays, as well as the fact that dividend payment dates tend to get clustered around common pay-out days such as the 1st, 15th, 30th or last day of the month.
If you have thoughts, comments or questions about any aspect of the Daily Dividend Income Portfolio, please drop me a line. I’d love to hear from you and I’m always open to hearing new ideas about how I can improve both this blog and the portfolio.
Here’s to profitable investing!