1Wk·

My path to financial freedom: I'm building a dividend portfolio - goals & strategy 📈💰

Hi dear getquin-Gemeinde👋🏼,

from today I am sharing with you my journey in the stock market. I am 27 years young and have been investing since February 2024. Since then, I have gained my first experiences with different brokers as well as with different financial products. Over time, I knew more and more exactly what I wanted: Dividends! The currently still small but regular payouts motivate me to put more and more money into my portfolio. I saw the current setback as the perfect time to end my "test phase".

And now I'm here: I want to build up a solid dividend portfolio for the long term. My goal? A steadily growing passive income stream through dividend payouts and sustainable wealth accumulation.

🎯 My goals:

📆 Dividend payouts (total per year):

👉🏼 2025: 50€

👉🏼 2026: 250€

👉🏼 2027: 500€

👉🏼 2028: 850€

👉🏼 2029: 1.200€

👉🏼 2030: 2.000€

📈 Portfolio value:

👉🏼 2025: 4.000€

👉🏼 2026: 10.000€

👉🏼 2027: 20.000€

👉🏼 2028: 32.000€

👉🏼 2029: 45.000€

👉🏼 2030: 60.000€

💡 My strategy:

✅ Focus on high-dividend companies with a solid balance sheet

✅ Reinvestment of dividends for the compound interest effect

✅ Long-term buy-and-hold with regular purchases

✅ Broad diversification to minimize risks

In addition to individual stocks, I will invest a somewhat larger proportion of my retirement provision in the $XDWL (+0.65%) and the $XSX7 (+0.52%) and a small but steadily growing gold position with the $EWG2 (+0%) build up.

I look forward to exchanging ideas with you and am eager to hear your tips and experiences! Which dividend stocks are your favorites? 🚀📊

#Dividendenstrategie
#FinanzielleFreiheit
#Investieren
#Börse
#Dividenden
#PassivesEinkommen
#Aktien

27 Comments

Dividendenopi👴@Dividendenopi

1Wk

Are your stated distributions annual? Gross dividends or net? No matter, your ETFs are not sufficient for this and gold does not pay out. Do you have more in your planning? How do you justify the dynamic growth of your portfolio? What is your regular savings rate? You are welcome to take a look at my portfolio. GROSS DIVIDEND a good 2,000 euros per month, portfolio value currently around 250k. And there are a few high-performers in there that will have to be replaced in 2 or 3 years. Just to do the math.

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DivShark97@DivShark97

1Wk

@Dividendenopi Thanks for your input! 😄
I hold gold to diversify my portfolio, not for dividends. The ETFs are for retirement planning, but of course also pay dividends. I plan to build up large positions in individual stocks or expand my existing positions.

I have defined the total annual distribution (gross) as a target in my contribution. I would like to achieve the portfolio value with regular and increasing contributions, reinvested dividends and the general increase in value.

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Dividendenopi👴@Dividendenopi

1Wk

@DivShark97 The gold thing is okay. I don't quite understand about ETFs for retirement provision. As you wrote in your other answer, you are planning a certain amount of dividends, the ETFs yield significantly less, so you will need shares that yield correspondingly higher dividends. It remains to be seen whether they will also deliver the planned growth. There will certainly be answers that a dividend strategy will cost you value growth, not unfounded given your age, but in my opinion it at least sounds like a rough plan that you are pursuing. If that means slowed performance with the motivation of regular cash flow and you feel comfortable, why not. Let us know which sectors or companies you are planning to get involved in if you like

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DivShark97@DivShark97

1Wk

@Dividendenopi I don't expect any great leaps from ETFs either. They are really purely for retirement provision. I accept the "slower performance" for the dividend motivation. In the end, I don't want to be annoyed about the lost percentages of an MSCI World, but I want to be proud of a portfolio that has been built up over decades with regular cash flow.

Basically, I want to invest in stable dividend stocks from the utilities, consumer goods, energy, real estate, financial services and tech sectors.

All in all, this is - as you say - a rough plan with big goals. Of course I want to achieve them. Let's see if it works. You're welcome to follow me so we can exchange ideas more often 😉

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S.A.U.@SAUgut77

1Wk

@DivShark97 phew, if I wasn't so flat after eating, I'd say something about your goals, which I think are too ambitious, but I'll come back to that. But respect, you still have a long way to go and it won't be as easy as you think right now....

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Dividendenopi👴@Dividendenopi

1Wk

@DivShark97 we will certainly read each other one or two more times 😇

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Julian@MoneyISnotREAL

1Wk

@DivShark97 I think it's good that you have a rough roadmap and strategy.

I myself also have world ETFs as the core of my portfolio. The dividends are fluctuating and "low" (approx. 1 to 1.5%).

If I take your figures for the year 2030, you should have a dividend yield of around 3.5% across the entire portfolio. (€ 60,000 volume at € 2,000 gross annual dividend).
If I assume a worst-case scenario of 1%, a portfolio volume of around € 200,000 would be required.

I think that just because you want to build up a "dividend portfolio" doesn't mean that it has to be an "8% dividend yield portfolio". 👍

I have a very similar approach myself and have a dividend yield of around 2% p.a.

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DivShark97@DivShark97

1Wk

@SAUgut77 THINK BIG! That's how I was brought up and that's how I experience/feel about the global economy on the stock market.
So far I haven't said anything about my monthly savings rate either. 😅 So I wouldn't say it couldn't work.

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Georg@G_with_shares

1Wk

@Dividendenopi May I ask again?
You are with 250k portfolio value with 2k monthly gross dividends?
That should put you at just under 10% on average per stock?
I've only looked at a few stocks now and I'm confused and interested because it looks like a good bit less, at least in my random samples.
Or have I misunderstood something?

And: this is averaged, right?
So the cash flow isn't timed so that it's really relatively stable on a monthly basis?

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CashBurner 🔥@DonkeyInvestor

1Wk

@Dividendenopi With a similar ETF position size, I also get a gross dividend of 2,000 euros - but per year 😅😭

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Dividendenopi👴@Dividendenopi

1Wk

@G_with_shares That's right, because my $QYLE was stopped out, I'm missing 100 euros a month, so 1955 on average at the moment. I am weighting the purchase right away and have 9.81% for stocks like $MO based on the purchase price, or over 9 gross for $BATS. $VZ is over 7. And stocks like $EQNR or $VAR are well over 10 percent. The uncertainty factor is the high-performers $HAUTO or $TRMD A, which are always good for a downside surprise. So far they have delivered. The net result is of course lower due to the tax, and for us Norwegians due to the withholding tax. But quite ok as a basis. That's right, it's averaged. I have 3 months under 1k, but June with over 4k.

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View one more answer

Burak Y.@Burak20

1Wk

Only those who think big will achieve big things. 👍🏽

And if it happens 2-3 years later, it doesn't matter.

Divide your overarching goal into several small intermediate goals to record successes. And don't forget to reward yourself when you reach an intermediate goal.

Wish you the best on your journey and stay invested. 🤙🏽

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DivShark97@DivShark97

1Wk

@Burak20 Danke! 🙏🏼

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Elfuhr@Elfuhr

1Wk

Sounds realistic. It all depends on the distributing values, which are not shown here.
Of course, it also depends on your savings rate, which is not mentioned here. I wouldn't rely on a constant increase through returns for the time being.

As of today, I have a portfolio value of 65,000 and expect a gross dividend of around 2,000 euros this year. Etf amount to around 20-25%

Good luck...

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Basti1983@Basti1983

1Wk

@DivShark97 I think your idea and strategy are definitely interesting, but of course also ambitious. I am currently building up a similar strategy. My goal is good solid dividend stocks. My goal is to start with 12 stocks to save 50-70 EUR per month. I then usually look at stocks in which I then buy at least 1 to several shares every month to increase my dividend, and I'm actually considering myself at the moment whether it makes sense to add dividend ETFs or whether I'd rather stick with individual stocks. What do the experts say? Does a dividend make sense for reasons of diversification or rather less sense due to lower dividends on individual stocks? I am open to ideas.

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DivShark97@DivShark97

1Wk

@Basti1983 Of course, ETFs serve as a means of diversification, but that's not the main reason for me. I save more for retirement provision. As I am building up a pure dividend portfolio, the ETFs are distributing.
If you want to add an ETF for diversification, look at pure high dividend products such as $TDIV or $ISPA. Some of these have a payout ratio of 3-5%.

But you can also do without ETFs. The more individual dividend stocks you include in your portfolio, the more you diversify. You are essentially building your own ETF. ^^

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DADlikesCRYPTO@DADlikesCRYPTO

1Wk

So it's definitely a tight program you have in mind.
I would be interested to know how you came up with the figures and values.

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DivShark97@DivShark97

1Wk

@DADlikesCRYPTO Thank you! :)
I plan with an annual dividend yield of 3.5-4%, annual capital appreciation of 6%, increasing deposits and reinvested dividends. You could say: ambitious. Yes, but I'm up for it too! 😄

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S.A.U.@SAUgut77

1Wk

@DivShark97 tight calculation, but you won't just get it with 3-4% and 6%, ...so the relation bothers me a bit about your plan...have a tight plan in mind myself but puhhhh....

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DivShark97@DivShark97

1Wk

@SAUgut77 high and regularly increasing monthly savings rate. Let's see if it works. :)

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Malte@Malte123

1Wk

@DADlikesCRYPTO Why tight? A portfolio value of 60k in 5 years is good, but you could achieve this with a savings rate of 1k per month alone, without any return.

Of course, this is significantly more than most people can + want to save, but with a frugal lifestyle and as a single person (preferably in a relationship without children with shared costs) it is quite possible in Germany.

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DADlikesCRYPTO@DADlikesCRYPTO

1Wk

@Malte123 Everything is possible, it just depends on your lifestyle and standards.
If you can maintain the savings rate for years, then it's a good way to go.
As soon as a wife, children, house or something else comes up in life, it becomes more difficult, but he has set himself goals that are achievable, so he should step on the gas and it will work out.

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OMEN@InvalidSyntax

1Wk

Don’t do this …. Income tax on dividends is hideous

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lullatscho@lullatscho

1Wk

The question is also how much can or do you want to invest per year without the dividends?

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DivShark97@DivShark97

1Wk

@lullatscho My plan is: annual dividend yield of 3.5-4% → reinvested and portfolio value growth of approx. 6% p.a. The rest is covered by regularly increasing deposits. I have also calculated a buffer. Basically, my plan is ambitious but feasible.

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ashish J.@JaqenH

1Wk

At 27 yrs, you should not touch a dividend etf with a bargepole.

Seriously why so much urge of instant gratification?

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