Reflections on My Dividend Journey
I’ve actually done what I set out to do. If you’ve been following along, you know I spent more than a year on integrating my investments.
Last month marked a significant moment—I completed my final step. Nike, Hershey, and Starbucks were sold off. These were the last three companies providing dividends in my taxable account.
It felt like a beautiful closure, a sort of new beginning. Not because these companies led to my downfall, but rather, because I followed my planned strategy.
Nike, Hershey, and Starbucks felt like my little projects. They delivered steady dividends, offered modest growth, and brought a sense of security each quarter.
Yet, unless I held a considerable number of shares or stumbled onto a rare breakout, the returns weren’t substantial. The problem stemmed from my approach rather than the companies themselves.
Owning individual dividend stocks turned into a flurry of activity, rather than efficient investing. What I really need is a portfolio that works harder for me without requiring relentless attention to stock tickers.
This wraps up my long and convoluted journey with dividends.
I had held onto Nike and Hershey since late 2022, observing the small profits trickle in—Nike brought in a modest 5% while Hershey barely hit half a percent.
The capital gains? $308.14 from Nike and a mere $31.99 from Hershey.
And this is precisely why I chose to sell them.
The dividends brought about a slight cost—$154.87 from Hershey and $95.52 from Nike.
Starbucks performed slightly better for me.
Since May 2023, it generated a dividend totaling $89.78 on capital gains, plus $577.46, rounding it all out to $667.24. Still, without a significant amount of capital, nothing seems truly transformative.
Currently, the Vanguard Total Stock Market ETF (VTI) stands as the only dividend player in my taxable account—and I feel good about that.
There’s no more overlap to ponder. It’s off my mind now.
Letting go of these investments felt like an admission, but ultimately, it was a necessary action.
This wasn’t a hasty decision. Rather, it was a thoughtful course correction.
The dividends continue to flow from VTI and some stocks in my Roth IRA. I’m relieved there’s no longer a need to track every cent manually on my fridge.
It was enjoyable while it lasted. Every payment came with its own lessons, and each felt like a small win. My future self would nod and say, “Keep going.”
Since my last update, I added a dividend of $128.54, making my lifetime total for my taxable account $1,467.60.
My losses have seen even greater improvement. My lifetime dividend now stands at $3,743.16, an increase of $375.66 since the last update.
Reaching that $5,000 dividend mark will feel like a new milestone.
But what truly brings me joy is watching my daughter’s Parker account take flight. She is the primary reason I started investing in the first place.
Parker earned $134.39 from the Vanguard High Dividend Allied ETF (VYM) on June 24th, and for the first time, her dividends were automatically reinvested into multiple full shares—specifically, 1.034. Now her real compounding interest can begin.
Additionally, she gained $53.77 from VTI shares, bringing the fund’s lifetime total to $176.86. Once we restructure her portfolio, her account is poised for rapid growth. At this point, Parker’s total dividend income across her custodial and Roth accounts is $1,225.25.
She’s catching up to my taxable account, and I couldn’t be prouder.
Yet, my excitement for dividends has started to wane.
It’s not because the dividends stopped working—the mechanisms were functioning as they should. They provided stable, predictable income. Perhaps I just exceeded my original strategy, or maybe I’ve simply evolved.
Dividend investing instilled in me discipline and perseverance. However, I’m no longer holding onto my positions out of nostalgia or hope. I’m now looking for something beyond just predictability. I need the benefits of exponential growth with a bit of asymmetric risk.
This phase wasn’t simply about compound interest for me. It was about closing a chapter.
Well, time moves on.
