How to Invest in your first Generational and Passive Income Portfolio
Wanna ensure wealth for your family for generations to come? Here’s How to Build a Zodiac Portfolio for dividends every month, every $10,000 equals $366+ per year forever.
I would like to say in my defense that I always name everything; even the cakes that I use to bake had names. So it’s very appropriate that I name this monthly dividend portfolio some cool title.
Monthly dividends – 13 holdings… “ZODIAC” it is.
Question: “But Lawrence aren’t there 12 zodiac signs?”
Answer: “No, do your research! After watching the anime Fairy Tail; I found that there were 13. So ha!”
Table of Contents
The Focus Point: 13 Zodiac 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 Investments and Side Hustle season.
Gone is the over-reliance on one singular 9-5 paycheck. That level of stability is gone. We are in a full reversion to the mean.
Now it’s the time to lean in 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 a lot of cash equates to a colossal failure in the long run, check Bankrates.com for yourself.
With the natural price inflation at 2.56%, “Cash isn’t king, Investing is!”
So what do you need to do?
Invest. Starting with this Zodiac portfolio is a great rookie investment strategy.
It will teach you the fundamentals of how the market works, the turbulence of presidential tweets, and the flighty persona of new investors. Once you master the process, you will be singing the praise of market valuations, dividends, and D.R.I.P.; all, on the way to being partially deflated come tax time if you went stir crazy on the buy and sells holding for less than 365 days.
Personally, if I had to do it over again, this is how I’d do it. Solid company. Dividend aristocrats. Pandemic survivors. Recession is resilient and reliable. It starts slow but cranks out dividends monthly. It can eventually form a pseudo pension.
2020 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. One thing is for sure, dividend investors earn 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. Disney (DIS) used to do so semi-annually but it’s struggling now. Might be a BUY opportunity though.
In focus: Dividend Reinvestment Plans (DRIP)
Investopedia defines a dividend reinvestment plan (DRIP) as “a program that allows investors to reinvest their cash dividends into additional shares or fractional shares of the underlying stock on the dividend payment date. Although the term can apply to any automatic reinvestment arrangement set up through a brokerage or investment company, it generally refers to a formal program offered by a publicly traded corporation to existing shareholders.”
In translation, your investment makes dividends and those dividends are reinvested into your holdings. On the way, your new holdings will grow faster and faster. It’s a wealth snowball effect.
Monthly Dividends issued by The Zodiac Investments
The list below is broken down by monthly dividend payers.
By owning these stocks, investors can anticipate payments every month. As of 10.15.2020
Dividends Paid monthly
- Realty Income (O) — dividend yielding 4.47%
In Focus: Real Estate Investment Trust (REITS)
Realty Income is my clutch day 1 homie. No matter what’s going on, this train keeps chugging along for a hot minute. The company increased its dividend 100 times since 1994. If you want to own a piece of Real estate investment trust (REITS), this is among the best performers. Honorable
REIT mentions or alternates:
- Simon Properties (SPG) – yielding 7.64% (Not monthly)
- STAG Industrial, Inc (STAG) – yielding 4.36%
- Main Street Capital Corp (MAIN) – yielding 8.15%
Quarterly Dividends From the Zodiac Portfolio
The list below is broken down by quarterly dividend payment dates.
By owning these seasonal stocks, investors can anticipate payments every three months. As of 10.15.2020 –
Start early with Dividends paid in January, April, July, and October
- Coca-Cola (KO) — yielding 3.23%
- PepsiCo (PEP) — yielding 3.2%
- Cisco (CSCO) — yielding 3.57%
Followed up with Dividends paid in February, May, August, and November
- AT&T (T) — yielding 7.46%
- CVS (CVS) — yielding 3.38%
- Procter & Gamble (PG) — yielding 2.1%
- Starbucks (SBUX) — yielding 1.76%
Close out with Dividends paid in March, June, September, and December
- 3M Company (MMM) – yielding 3.49%
- Johnson & Johnson (JNJ) — yielding 2.64%
- McDonald’s (MCD) — yielding 2.16%
- Microsoft (MSFT) — yielding 0.89%
- Southern Company (SO) – yielding 4.32%
Other honorable mentions include:
- Chevron — yielding 4.0%
- Exxon Mobil (XOM) — yielding 4.2%
Start the Zodiac Portfolio ASAP!
Receiving dividends every month is a clean way to increase your cash flows while you use dollar-cost average investing along the way.
The zodiac portfolio averages 3.65% with 5-year Growth averaging 40%+
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.
Every $1,000 investment in the zodiac portfolio ends up being $36.60+ per year for a lifetime. At $100,000 invested, that’s $3,600+ per year for the rest of your life. At $1,000,000 after a lifetime of investing that’s $36,000.
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.
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.
I’ll leave you with this infographic on how different earners break out their wealth. See how you fair (below). For more articles like How to build a long-term portfolio for 250% or a 5-yr portfolio over 500%, stay tuned to www.theneighborhoodfinanceguy.com and if you want great breakdowns on investing 101, check out Investing with Rose on YouTube.
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%.
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