Saturday, February 22, 2014


At the beginning of 2013 I was receiving 1 dividend payment per month from an investment portfolio that had been decimated due to high medical bills from 3 heart attacks and 2 heart surgeries.  So I set out to rebuild my investments by creating my own "cash machine."  My idea was to structure a portfolio of 20 stocks and mutual funds generating monthly cash flow through dividends.  I completed the setup of my portfolio in November of last year and have since been working to build current positions as rapidly as possible.

My investments are almost evenly split (dollar wise) between my IRA account and my taxable brokerage account.  Generating income for my retirement and if necessary for current needs.  Right now, all dividends are being reinvested to build current holdings.  My 20 investment portfolio includes 8 monthly dividend paying mutual funds (six large cap stock funds and 2 bond funds).  The balance of my investments include such blue chip stocks as GE, LLY, POT and T.  I also have holdings in financials including WFC, NYCB, HWBK, MFC and UVE.  The remaining stock holdings include GLW, RRD, CNP, HBI and EMN.

Dividend income for the month of February 2014 was up 200% over February 2013.  My investment portfolio now produces 156 payments per year, for and average of 13 dividends per month or 3 dividends per week.  When I set out to create my own money machine, I had no idea it would work out so well and that it would be so simple to set up and keep track of.  So far everything has worked out quite well, much better than I had expected.  If I made no further cash investments, it's nice to know that my cash flow would continue to increase each and every month through reinvested dividends.  I like to think of dividend payments as paydays.  My job gives me 2 paydays per month.  My investment portfolio gives me 3 paydays per week.  So you can bet I'll be putting a lot of effort into building up my portfolio.  It's like giving myself a raise every single month.  What could be better than that?

You can create your own "money machine".  I started with 3 stocks that paid dividends in different quarters.  GE, LLY and NYCB.  With these three stocks I collected a dividend payment every month.  Since the "miracle of compounding" works best when your money is compounded more frequently, I simply expanded on my 3 stocks and added another 144 payments a year.  Anyone can do this.

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