Hey everybody welcome back to whiteboard Finance my name is Marco and I'm here to Help you master your money and grow your Dividends your passive income ooh the Allure of passive income sitting on a Beach sipping mimosas while your Dividend stocks pay you right uh no all Joking aside this video is about how I Make 636.75 cents a month roughly every Single month based on my stock portfolio So this is a combination of my M1 Finance portfolio that I've been Investing 230 dollars a week into for Over three three and a half years now at This point uh that's been completely Public you can find it in the community Tab of my channel and then also it's a Combination of a couple equities Portfolios that I have uh with Schwab And then also Vanguard these aren't some Of my portfolios that are like 20 years Old but you can see how well this does For just being about a three-year-old Portfolio or so so let's get right into It so this is a service called Simply Safe dividend uh it costs about 300 a Year I'm not an affiliate it because the Owner I talked to him he doesn't even Offer an affiliate program and if he did I'd be the first one to sign up because I enjoy using this what this does is it Allows you to curate all your different Portfolios it allows you to create fake
Portfolios or play portfolios but these Are actually real so I have my schwab Taxable I have my Vanguard Roth IRA and I also have my M1 Finance SEP IRA Portfolio for a total of 288 687 dollars So what this comes out to be is a total Annual income of seven seven thousand Six hundred forty one dollars with a Dividend yield of only 2.65 and a yield On cost of only 2.65 we'll get into this Later so I kind of wanted to break this Video up into two sections uh the first One is going to be talking about you Know what earns me this money and how it Does that and then the second section Will be some of um some of the pros and Cons of a dividend portfolio in general So I'm kind of freestyling this video Just giving you my candid thoughts uh It's no different than you and I you Know grabbing a beer at the bar and Having a conversation about this right So going back to the portfolio let's Take a look at what makes up the 7641 so the cool thing about this is That you have an income calendar so Basically curates all of your Holdings Into one so you can see here that every Single month uh month in a month out I'm Making at least 215 dollars uh some Months is 252 but on the stocks that pay Quarterly you can see how this jumps up To be you know a thousand dollars and Then at the end in my Roth IRA that's
Actually a Target date fund uh that pays Once in December which is why December Is two thousand four hundred dollars and Some change so you can see here a lot of These smaller ones a lot of these Smaller Holdings that only make up you Know 11 bucks a year 13 bucks a year 17 Bucks a year those are just very small Slices in my M1 Finance dividend Portfolio my SEP IRA you'll see some of The bigger chunks here that are in my Taxable account uh so I'm not going to Go through every single one but you can See some of the bigger hits are avuv uh BND Uh Jeffy is two grand a year I wouldn't Recommend Jeffy if you're younger and It's also it's mostly for downside risk In my portfolio but I'm not going to get Into exactly what jeppy is but it's a Monthly payer uh they sell covered calls They have an 11 dividend yield which I Would not recommend chasing that's Basically a yield trap in my opinion but We'll talk about that later In the second half of the video and you Can see the rest are just your Traditional Johnson Johnsons or Kimberly Clarks your 3ms uh this one is a monthly Payer this is uh realty income uh coming Out to be 243 dollars a year uh schd I've had this for years now Um I've had it for about three years in The M1 Finance portfolio I've only had
It for you know a few months in the Taxable portfolio uh we have the target Date fund coming in at 1200 a year uh And then the rest are basically just Your vtis and other positions I'm just Going to hold literally forever uh Coming down here for a total of seven Thousand six hundred and forty one Dollars So with that being said Um I want to get into the second part of The video where I'm going to dissect a Couple of these individual stocks we'll Talk about the risk of chasing high Yields and then we'll also talk about The pros and cons of a dividend uh Portfolio in the first place okay but Again I didn't want this to turn into Like some Guru passive income video Because that's not my style but I will Say that dividend income truly is one of The rarest forms of truly passive income Outside of you know earning money in a Checking account savings account CDT Bills things like that and if you're Doing it right with dividend growth Which we'll talk about these should Crush those safer Investments over the Long term especially if you're investing In solid companies but before that let's Get into today's sponsor Masterworks Generating investment income is more Important than ever because I've been Shocked by the number of comments like
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Dividends it's thrown off however Um what I do want to share is is chasing Yield so you can see here these three Losers are Medtronic Verizon and 3M Um but you can see that people start to Get enticed by this dividend yield Because it's so high because the share Price has gone down so much Um so you can see 3M is down 30.3 Percent but people say hey they pay a Healthy you know five and a half percent Dividend or Medtronic 6.72 and then you Have 3.26 with Um oh sorry Medtronic is 3.26 Verizon is 6.72 my bad but basically this isn't Even that enticing at all because you Can get this with schd which has Outperformed the S P 500 over the past 10 years or so so you have to be careful With individual stocks that's why most Of my net worth is sitting in ETFs and Index funds there's a reason for that Just because I've been doing this for a Long time you guys I've been investing For 17 and a half years Um and I realized and basically freshman Sophomore year of college that index Funds and ETFs are the way to go so That's one part of it so don't don't get Caught up in um Chasing yield that's one of the worst Things you can do with the dividend Portfolio and then also don't just think Oh you know this company's on sale time
To buy it that's that's one of my Biggest pet peeves in investing is People say it's on sale well yeah what About the companies that never that Never recovered no one ever talks about That or the years or decades that it Takes for them to recover Um look at like Cisco for example after The.com bubble you're still not at those Levels right so slow and steady wins the Race The second thing that I wanted to talk About was when people talk about the Allure of like passive income or Dividend investing or any of that stuff They're probably selling you something Okay they're selling you a product There's very rare channels that just Focus on the dividend investing aspect They are out there and I'm a big fan of Them uh like Gen X dividend investor There's a bunch of them but what my Point is is that passive income takes Work okay so the amount of money to fund This kind of a portfolio to where you Can you know get 636 dollars a month is Going to take a lot of money to do so so Which means you need to put in you need To give value to the marketplace in one Form or the other uh for most people Watching this channel that's in the form Of a job or in the form of a business You know some form of income right so There is no money that grows on trees
And to get these dividend portfolios to A significant portion to where they are Actually taking care of your bills your Mortgage your groceries Um you know things that you enjoy doing Traveling whatever that may be or to the Point where you get financially uh Independent you can retire early Um you know you need you're gonna need a Couple mil the other thing I wanted to Talk about was this yield right here is Not good this is 2.65 so inflation is Coming in at right around six or seven Percent you better believe if you're Yielding this Um your growth of the actual equities Themselves better be significantly Higher to make up for that difference Because if not you're just a glorified Saver and you're losing money to Inflation you're literally losing money To purchasing power uh same thing with This yield on cost this is not a great Yield on cost because it's such a young Portfolio this yield on cost gets Significantly higher when you start Um plowing back all of the dividends That this portfolio is earning the other Reason but just a side note to give Myself more credit this is combining Like over a hundred thousand dollars of Vti okay that's a high growth um it's a Total Stock Market ETF right so if that's only going to be
You know 1.8 or something significantly Smaller than you know like an schd which Could be you know 3.3 percent or so or If you look at like uh jeppy you know It's coming back at 11 right so the Reason I'm showing you all this is Because you want to find The Sweet Spot You don't want to get enticed by super High yield but at the same time you know If you're creating a quote-unquote Dividend portfolio you may want to put It in a tax advantage account or you're Gonna need a ton of money to where you Can kind of live off that right and if You put in a tax advantage account a lot Of times you can't touch that until your Late 50s depending on you know what You're doing my M1 Finance portfolio is A SEP IRA so that's something that I'll Probably start accessing in my 50s but a Lot of this stuff is also in my taxable Account which I can access right away And do whatever I want with it you just Have to pay taxes on it right the other Thing I want to talk about very quickly Is that Um they're in a nutshell the argument Against a dividend portfolio is that People say well Marco when a company Pays out a dividend You're simply just Reducing the value of the share price in A nutshell right you're just taking that Money that would be used for growth and Things like that and you're just paying
It out in the form of a dividend you're Capping your growth you're lowering the Sales I can't even talk right now share Price right so what I'm trying to say is Yes but if you're investing in the right Dividend companies that are not only Consecutively growing their dividends They've also grown their share price as Well and they've also kept up with Inflation if not beating it with those Two things combined and it far exceeded It especially if you're compounding over Time the other thing is with these Dividend companies if you're investing In solid dividend Aristocrats Kings Champions these are proven solid Companies that are able to weather Storms of recessions right they don't Get hit as hard in recessionary periods Because they're solid companies it's the Whole reason why you're investing in the First place if you look at the Phenomenon of like 2020 2021 2022 you Know the kova days and all that people Were investing in crap coins because They're in the crap coin casino trying To make 10x 100x thousand X overnight That's not investing that's gambling you Can go to the casino and do that you can Go put it on red or black and spin the Roulette wheel if you want to do that Right Um worst odds in the casino I think by The way because of the greens but anyway
I digress My point is we're investing here for the Long term Um a lot of these numbers aren't Necessarily attractive from a dividend Yield and a yield on cost standpoint but What they're going to be attractive with Is if you have this income forecast for Example you can see what this can grow To you can see that this can grow to you Know hundred thousand dollars 20 years From now uh the question I always I want To play Devil's Advocate is what's a Hundred thousand dollars going to be 20 Years from now we're gonna be able to Buy a car you know a Honda Accord for 100 grand we don't know right but this Will take care of a lot of the living Expenses especially if your nut is low If your living expenses are low this These dividend portfolios can be a great Way to achieve fire it's a great way to Do it passively right so I just want to Play Devil's Advocate I want to give you All the different scenarios my goal is To educate you with this channel it's Not to push a certain thing right if I Thought if I discovered tomorrow in my Research that this is a terrible way to Invest your money I'd probably tell you That right I'm not selling you anything But the one thing I do want to pitch is At the end of the video very quickly is Whiteboard Finance University in the
Process of hiring four professors uh They're they're on board uh one is for Real Estate one is for stocks one is for ETFs and the fourth one is for personal Finance and budgeting and then you you Have a weekly access to me so think of It like a gym membership you have access To all these professors these personal Trainers then you have weekly access to Me for a q a Um it's gonna be a huge Community I Can't wait to launch it so uh check that Out down in the link below if you're Still here listening to this ramble or This rant thank you so much I know my Content is a little bit longer format But I'm just trying to educate you in The best way possible and I know that Really can't be done and you know tick Tocks and shorts and these you know Bite-sized you know types of content Which I'll probably be doing but I'm Always going to be a long format guy I'm More of an educator Educational Entertainer I guess I know Some of my dad jokes I think are funny But other than that I appreciate you Staying um for this long so thank you so Much everybody uh Happy investing and Have a prosperous day
