Saturday, February 8, 2020

First Dividends

It has to be said that dividends are a joy to my heart. I actually wait like a kid at Christmas, looking for those dividends to hit my bank account.
cash is the reward which you receive when you invest for dividends
Cash Dividends

They never fail to bring me joy. After over forty years of investing I still get excited. You would think after all this time that I would have become blase about the prospect of yet another dividend check. But no. Not at all.

Most dividends these days just get re-invested into the paying stock. But yesterday I received my first ever dividend in my new M1 Dividend paying account.

It was a dividend from LQD a monthly paying corporate bond ETF. I also hold this stock in my Roth IRA, where I have a quite large holding. The stock pays over 20 cents per share every month, and I added a fraction of a share to my new M1 Finance account opened three weeks ago to provide some monthly cash income.

Yesterday it paid a one cent dividend for about 500ths of a share.

Wow! Big deal I hear you cry.

Well yes, for me it is a big deal. It is the first dividend in a new account and as such deserves recognition.

I am now seeing a spark of cash inflow.  For the last three weeks cash was going from my bank to fund this new account. I knew that would happen. Now the cash generating portion of the account is primed. Cash has begun to come in from a new source.

Of course I will continue to fund the account from my bank for a while.

That is all planned.

But as the first week of February, 2020, comes to an end. There are several more stocks lining up to pay a dividend this month and several more paying out dividends throughout March.

Then the difference with M1 Finance is that the dividends go into my cash pot to be re-invested in any stock in my portfolio.

I have a portfolio of one hundred stocks, most pay a dividend, just two stocks do not. Amazon and Alphabet.

You can follow my portfolio at My Dividend Portfolio. 

If you also decide to open an account with M1 Finance using this link you will receive a $10 Bonus in your account when you fund your account for the first time with $100