Sharing My Dividend Stock-Focused Portfolio Results (Year 2)
Since 2022, I've only been accumulating dividend stocks. I just couldn't mentally handle growth stocks, so I got out entirely.
My current allocation is roughly 40% Korean dividend stocks, 40% U.S. dividend ETFs, and 20% cash. I reinvest all dividends, and when there's a correction, I deploy the cash in tranches.
Honestly, my returns aren't spectacular. As of last year, my total return including dividends was around 9%. I heard someone around me made 50% on Bitcoin. Every time I hear that, I get shaken.
Still, here's why I stick with this approach:
- Having cash hit my bank account every quarter is a huge psychological boost
- I don't have to sell even if I suddenly need money
- I don't have to watch the news
The thing I regret most about dividend investing is that I added too many stocks. At first I held more than 20, but I couldn't keep up with managing them, so I've now pared it down to 8.
6 answers
Agreed—you hold on for the thrill of those dividends rolling in lol. I can’t do growth stocks either; my heart can’t take it.
Well, I’d say 9% isn’t bad, but the moment you start comparing yourself to “the person who made 50% on Bitcoin,” that’s when this strategy starts to wobble. The risk is different to begin with, anyway. The returns of people around you are all survivorship bias, and the person who lost 70% is staying quiet. I think the most important thing is to set your own standard and not compare yourself to others.
Nice job narrowing it down to 8 holdings, seriously. Once you get past 20, even when dividends come in you have no idea where they came from, and rebalancing just doesn’t happen lol. For me, 12 was the limit.