Note from Daily Trade Alert: Today we’re continuing with the second installment in our new series of articles from a young man who calls himself “Dividend Mantra.” This series — commissioned by DTA — aims to show our readers exactly how this 30-year old (with a $50k salary) plans to retire in just 10 short years from now. As a reminder, unlike the majority of analysts we cover here at Daily Trade Alert, “Dividend Mantra” is NOT a professional (and he doesn’t claim to be). Nevertheless, we’re fascinated by his story and we’re confident our readers will benefit from his approach to generating a lifetime of steadily rising income…
In my last article I introduced you to what a dividend growth stock is… why they typically have competitive advantages (moats)… and why I have a large percentage of my wealth invested in them.
Today, I’m going to give you the “goods.”
In short, I’m going to reveal the details of my real-life $75,000 portfolio… so you can see for yourself that I’m putting my hard-earned money where my mouth is.
Let’s get started…
In the table below you’ll find my personal portfolio.
I’m so confident in these stocks that I’m betting my early retirement on them…
In fact, I’m still in the asset accumulation phase, so it could change month-to-month.
But this is the portfolio I’ve been painstakingly and lovingly building over the last 2.5 years.
And it’s growing larger and larger every single month, paying me more and more dividends the longer I simply wait.
You probably notice that some companies in my portfolio don’t have a 10-year dividend growth rate (DGR) listed. That’s because they are either newer entities and/or have not been growing dividends for 10 straight years.
I basically started with nothing and I’ve been contributing to it with capital funded from a day job where I make approximately $50,000 per year. Living well below my means and buying quality companies at attractive long-term valuations is my motto.
Another thing you may notice is the diversification between businesses and sectors.
Spreading $75,000 over 28 businesses means that I don’t rely on any one company for an overwhelming percentage of my dividend income. You can see all the major business sectors represented here. I own a percentage of companies ranging from banks to missile manufacturers to beverage makers.
In other words, this portfolio gives me a diverse set of businesses out there from which to receive passive income.
There’s something else to consider too…
Whereas most ordinary citizens rely on one source of income (their job) to fund their lifestyle and meet their expenses, I have 29 sources of income: 28 dividend stocks, plus my day job.
Talk about sleeping well at night!
I call my portfolio “The Freedom Fund” because I’m counting on it to give me the freedom to pursue interests other than full-time work by the time I’m 40.
I realize that’s just 10 short years from now, but this is entirely possible when you consider the very nature of the kinds of stocks I’m simply buying and holding.
Not only could they continue to offer ever-growing streams of income, but at the same time they could offer me less risk than most “normal” stocks.
In my next article I’ll show you what I’m talking about… and I’ll explain why I consider these stocks — dividend growth stocks — to be the safest stocks in the world.
– Dividend Mantra
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