March 2018 Dividend Income!!!!!!
Above is a graph displaying my dividend income monthly thus far for 2018. The amount was $163.03 which is a %5.6 gain from February, this was all due to dripping. This involves taking the dividends received and reinvesting them back into the company that paid them out. In a brokerage account or bank investing account they synthetic drip, which means only whole shares can be bought. Any cash left over will get deposited as cash. The beauty of this is no commissions are charged, and the majority of your dividends go right back to work. This method makes things super easy, it is on autopilot.
Autopilot takes all the work, out of the equation. This is perfect for those too busy, to actively manage investments. This may be the best course to take also as the amounts you will be receiving may be small. As mentioned before, avoid commissions, but in the end kept this way as your wealth grows might not be the most efficient way. Once dividends you are receiving combined with any new money to invest reaches $500 or more a month it may be better to let the cash pile up. Keep at most 1% of your money to be used to make the purchase on commissions. With this method you can select the best bang for your buck and buy the stock most undervalued at the time. An investor also has a high probability of getting the max yield on their investment as well. Typically when stocks are in an undervalued state, it coincides with their yields being at a peak as well.
These are my own thoughts and ideas, would love to hear other people’s experiences or thoughts.