How to Build a $1,000/Month Dividend Portfolio: My 67-Week Update

Introduction: Why Focus on Dividend Investing?

Hey there! If you’re into making your money work for you and building a reliable income stream, dividend investing might just be your best friend. In this blog post, I’m going to walk you through my personal 67-week journey of building a dividend portfolio that aims to pay me $1,000 a month in passive income by the time I retire. I’m using a strategy called dollar-cost averaging and focusing on dividend safety, diversification, and steady growth.

Whether you’re a beginner or have some experience, understanding how to grow a dividend portfolio over time can help you achieve financial independence and peace of mind. Let’s dive in!

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Starting Out: The Basics of My Dividend Portfolio

When and How I Started

I kicked off my dividend portfolio on February 10, 2020. Since then, I’ve been consistently investing about $230 a week, which adds up to roughly $1,000 every month. The idea is simple: keep investing regularly regardless of market conditions, a strategy known as dollar-cost averaging. This approach helped me start just before the market crash in March 2020, letting me buy shares at lower prices and ride the market’s recovery.

Current Portfolio Snapshot

• Total Value: Around $20,467
• Overall Gain: About $3,260
• Money Weighted Return: 42.64% (pretty solid!)
• Dividend Yield: Approximately 2.66% average yield across the portfolio

This steady growth shows that slow and steady really does win the race when it comes to dividend investing.

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Diving Deeper: What’s Inside My Portfolio?

ETFs and Individual Stocks

My portfolio isn’t just a random collection of stocks. It’s carefully weighted toward ETFs and stocks that offer strong dividend potential and stability. Here’s the breakdown of my biggest holdings:

• Vanguard VYM (High Dividend Yield ETF)
• Vanguard VIG (Dividend Appreciation ETF)
• Vanguard VNQ (Real Estate Investment Trust ETF) – 10% allocation because REITs tend to offer solid dividends
• Schwab SCHD (U.S. Dividend Equity ETF)

Alongside these ETFs, I hold individual stocks from well-known companies such as:

• Visa, Verizon, Procter & Gamble, Johnson & Johnson
• Walmart, Pepsi, AT&T, 3M
• Texas Instruments, BlackRock, Cisco, Pfizer, Coca-Cola
• And several others across various sectors

Why This Mix?

I’m building a dividend slash income portfolio that will pay me passive income in retirement. This means I’m focusing on companies and funds that consistently pay dividends and have a history (or strong potential) of increasing those dividends over time.

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The Power of Dollar-Cost Averaging and Consistency

Dollar-cost averaging means investing a fixed amount of money at regular intervals, no matter what the market is doing. This strategy reduces the risk of investing a lump sum at the wrong time and smooths out the purchase price over time.

By investing $1,000 per month consistently, I’m building a portfolio that grows not just in value but in dividend income, too. Even when the market dips, I’m buying more shares at lower prices, which boosts future income.

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Tracking Dividend Safety: Why It Matters

Using Simply Safe Dividends

I use a tool called Simply Safe Dividends (not sponsored, I pay for it myself) to track how safe the dividends in my portfolio are. It rates each holding’s dividend safety, which helps me avoid companies that might cut their dividends unexpectedly.

• About 40% of my portfolio’s dividends are rated safe or likely to grow
• 7% are considered unsafe, mostly due to AT&T, which recently announced dividend cuts

This kind of insight is crucial because dividend cuts can seriously slow down your income growth.

What Happens When Dividends Are Cut?

For example, AT&T’s dividend got downgraded after they announced plans to cut their dividend in mid-2022 due to restructuring. I let my community vote on whether to keep or remove AT&T from the portfolio, and the majority voted to keep it for now.

This transparency and active management keep the portfolio healthy and aligned with my goals.

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Diversification: Spreading Risk Across Sectors

One of the biggest lessons I’ve learned is never to put all your eggs in one basket. My portfolio is diversified across:

• Technology (Visa, Cisco)
• Consumer Goods (Pepsi, Procter & Gamble)
• Healthcare (Johnson & Johnson, Pfizer)
• Real Estate (VNQ REIT ETF)
• Energy and Materials

This diversity means that if one sector is struggling, the others can help balance things out, keeping income and growth steady.

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The Dividend Growth Factor and Income Forecast

Dividend Growth Rate

My portfolio’s dividend growth rate averages about 3.5% per year, which is solid for long-term compounding. This means the dividends I receive should increase steadily, helping me beat inflation and grow my passive income.

Looking Ahead: Income Forecast

Assuming I continue investing $1,000 per month for the next 15 years, and the portfolio grows at an average annual return of about 8.43%, here’s what I expect:

• Portfolio value: Close to $500,000
• Annual dividend income: Over $12,000, which breaks down to $1,000 per month
• Total dividends received over 15 years: Significant, adding to my wealth beyond just the portfolio growth

This isn’t a get-rich-quick scheme but a steady path toward financial independence.

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Why Choose a Retirement Dividend Portfolio?

It’s Not About Moonshots

This portfolio isn’t about chasing meme stocks or quick gains. It’s designed for retirement – slow, steady, and reliable. The goal is a predictable income stream, tax advantages (since I’m investing through a SEP IRA), and peace of mind.

Tax Advantages Matter

Investing within a tax-advantaged account like a SEP IRA means I’m not paying taxes on dividends yearly, allowing the money to compound faster. This accelerates growth and income potential significantly.

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Community Engagement: Voting and Portfolio Updates

One cool aspect of this journey is that I let my viewers and subscribers participate in decision-making. Every week, I post polls on my YouTube channel community tab where you can vote on which stocks to buy or sell.

This interactive approach makes investing fun and educational, plus it keeps me accountable!

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Tools I Use: M1 Finance and Simply Safe Dividends

M1 Finance

I use M1 Finance to manage and automate my investments. It’s free, easy to use, and perfect for dollar-cost averaging because you can schedule automatic deposits and purchases.

If you want to learn how to use M1 Finance effectively, I’ve created a free training course linked below.

Simply Safe Dividends

This tool provides dividend safety scores and forecasts, giving me confidence in my holdings and helping me avoid surprises.

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Final Thoughts: Patience and Discipline Are Key

Building a dividend portfolio that delivers $1,000 a month in passive income takes time. It’s about being consistent, informed, and patient. The market will have ups and downs, but with a diversified portfolio, regular investments, and a focus on dividend safety, you can create a reliable income stream for your future.

If you’re just starting out or looking to improve your dividend strategy, remember: slow and steady wins the race.

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Bonus: Fun Fact About the Dow Jones Industrial Average

Before we wrap up, here’s a quick fun fact — the Dow Jones Industrial Average just turned 125 years old! This reminds us that investing is a long game. Instead of trying to time the market or chase quick wins, think about building your wealth over decades.

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Ready to Start Your Own Dividend Journey?

Check out my free M1 Finance training to get started with dollar-cost averaging and building your dividend portfolio. Trust me, the sooner you start, the better off you’ll be.

Got questions? Drop them in the comments or join the community on my channel. Let’s grow wealth together!

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Thanks for reading, and here’s to your prosperous financial future!