In the video below I talk about my December 2021 Passive Income from Dividends and Options. I include my dividends income for the month. It is typical to earn good dividends at the end of each quarter. This is due to the way most dividends are paid. Most of them are paid quarterly and a sizable number seem to fall on the end of the quarter. So typically, the last month of each quarter tends to have the most dividend income.
I share the dividends in the video but fail to discuss some of the finer points of dividends. First, most of the companies and ETFs I have invested in have rarely decreased dividends. It does happen but it is rare. This can be especially true if you are buying Dividend Aristocrats. These are companies that have not only continued dividends for extended periods of time (25 years) but also increase the payout yearly.
This can dramatically impact the dividends you receive over time. Here is a real example. Imagine if you have invested in. Prudential (PRU) back in 2014. The dividends would have more then doubled from $2.17 a year to over $4.80 a year.
The increase in dividends over the years can super charge your dividend cash flow. Now just imagine that most of the investments were similar. You could double your dividend income every eight years or so. Now not all dividend aristocrats increase dividends as much as PRU. But still your dividends would be increasing by just owning these types of investments.
The beauty of dividends is that they are truly passive. You do not have to do anything, and they are automatically deposited in your accounts. I have been partially living from my dividends for years. They gave me the ability to go off on my own and start my own consulting business.
In the future the dividends and premiums from selling options will help me fortify my financial independence. Not sure I will ever retire. If I get to do what I enjoy it does not make sense to do the old fashion form of retirement. If you enjoy what you are doing it really is not a job.
Thanks for joining me on my journey!
Uncle Jim
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Original Video Description:
By Selling Cash Secured Puts, Put Vertical Credit Spreads and Covered Calls I was able to earn $2,883.75 In December 2021. I also earned $2,925.93 on dividends for the month. Most of my options trades are on value stocks. I did eighteen trades with an average trade of $160. These were passive trades due to how little time I spent making the trades. For the entire month, I spent less than 11 hours.
In the video, I share how I did this and my actual trades and dividend distributions. Thanks for tuning in and happy investing!!
