Hedge Against Recession With This Passive Dividend Income Portfolio

To Hedge or Not to Hedge that is the question. Bitcoin is down over 60% from its all-time (Nov 2021 to June 2022). The S&P is posting back-to-back losses. Big tech lost $150 billion in market valuation in one quarter.

As the market dives deeper into a recession, the best thing to do is to re-strategize to work S.M.A.R.T.E.R. and not harder.

Here’s How to Build the Div.X Portfolio to build passive income.

Just remember that for every $10,000 you invest, the dividend yield equals more than $450 annually. Basically, it’s free money.

I would like to say in my defense that I always name everything; as such, Div.X sounds cool.

Table of Contents

Deep Discount Opportunity: 10 Passive Income-Producing Holdings

While the 2009-2019 decade was relegated to all types of investments including stocks, Buying and Flipping, Air BnBs, MLM Scams, Brunches, Day parties and etc.; 2020-2025 will be the invest or go broke season.

Most Americans were over-reliant on one 9-5 paycheck and matrix-level American Dream. That level of stability is gone. We are in a full reversion to the mean.

It’s time to go lean on expenses and fully adjust to the new normal.

Saving accounts are in the full-on red with returns as high as 0.85% and as low as 0.01%.

Storing cash equates to a colossal failure in the long run, check Bankrates.com for yourself.

With the record high price inflation at 8.6%, “Cash isn’t king, Investing is!”

So what do you need to do?

Invest. Instead of the Zodiac portfolio that pays out month after month during times of economic expansion, the Div.X portfolio works on a defensive level.

This goes beyond the fundamentals of the market, instead, it’s all about gauging future wins off of the actions you take today. Buying deep discount stocks will build future 2024 successes.

Once you mastered that, you will be singing the praise of +50% growth during the next expansion, small dividend inflows, and the D.R.I.P game. While others are panicked, this is your opportunity to strategize future wealth.

The wealthy don’t ask for easy times, they merely met change and get better. Figure out how to become recession resilient and financially reliable in your lifetime. So crank out this dividend strategy.

2022 Year-to-Date (YTD) and the 2020-2021 Market Recap

Whether you are an extreme introvert that enjoyed 2020 or not, the market was kicking out riches to the few bold enough to buy the dip. Some Corporate earnings grew by as much as 750%+ (TESLA: TSLA), while some stocks split (Apple: AAPL +110%) to a frenzy on new investors.

With gains retreating from record highs, one thing is for sure, dividend investors earned their fair share of stable influx no matter the odds. Feel free to use Dividend.watch to back-test the math, it is nuts.

Dividends might not be fast and exciting cash growth producers, they are part of a new way of income stream diversification that is attractive and passive enough for rookies and veteran investors. Many companies pay out dividends quarterly (every three months) while a select few pay out monthly or even annually.

Might be a BUY if you want to hedge your bets while securing your future financial position opportunity?

Quarterly Dividends issued by Div.X Investments

The list below is broken down by quarterly dividend payers.

By owning these stocks, investors can anticipate payments every quarter. As of 5.7.2022

Dividend Yields = Steady Cash Inflow

Portfolio Breakout – Remaining Percentages

Costco Wholesale (COST) — yielding 0.65%
JPMorgan Equity Premium Income ETF (JEPI) — yielding 8.09%
AT&T (T) — yielding 7.46%
McDonald’s (MCD) — yielding 2.14%
JPMorgan Chase & Co. (JPM) — yielding 3.17%
Lowes’ Cos. Inc (LOW) — yielding 1.63%
Main Street Capital Corporation (MAIN) — yielding 6.35%
Verizon Communication Inc. (VZ) — yielding 2.16%

Honorable Super Mention – The Energy Sector:

Chevron — yielding 4.07%
Exxon Mobil (XOM) — yielding 3.36%

Start the Div.X Portfolio and Hedge the Future

Receiving dividends quarterly is a clean way to increase your cash flows while you use dollar-cost average investing along the way.

The Div.X portfolio averages 4.573% with 5-year Growth Potential of 70%+ from the low of 2022.

Buying dividend stocks generates income and appeals to newer investors looking for lower risk. It’s a guaranteed way to make money vs saving your cash in bank savings at less than 1%.

On top of that, you receive Capital appreciation. It means that your money is earning money while the market casually increases.

Which is a Better Hedge for Recession: Dividends vs Treasury I Bonds

Every $1,000 investment in the Div.X portfolio ends up being $45+ per year for a lifetime.

At $100,000 invested, that’s $4,573+ per year for the rest of your life. At $1,000,000 after a lifetime of investing that’s $45,730.

On the other hand, I bonds are a good cash investment because they are guaranteed and have a tax-deferred, inflation-adjusted interest. They are also liquid after one year. You can buy up to $15,000 in I bonds per person, per calendar year—that’s in electronic and paper I bonds.

You could invest in these bonds for 9.62% from May to October 2022 with a minimum of $25 and a maximum of $10,000. The cons include document tracking, limited time frame, early withdrawal penalties, and variable rate increases while you are locked in.

Verdict – It Depends?!

No matter which you pick, the goal is to move your money where it fits your financial plan. The distinction will likely be with your time horizon and if you believe the market will rebound in 2023. Either way, the end goal is to hedge against the current downturn.

How much would it take you to invest $1,000,000?

Less time than you think. Compounding interest helps you fight your way upward and helps you sustain generational wealth for lifetimes to come. But that’s another blog post for another time. Bonus, if you want to copy the portfolio, check it out on M1 Finance. And if you want to start investing, I got the $10 for $10 referral link, right here.

With the stock market declines toward a recession, your next move should be your best move. Time to hedge losses with passive income.

Bonus for the True readers that really take their time and make it to the end, if you want an epic growth style portfolio, check this out. 5-year avg over 375%.