Wage Earner's US Dividend Stocks: 3-Month Progress Report
It's been three months since I started investing in dividend stocks, and now I get why everyone keeps talking about cash flow.
At first, I only held Dividend Aristocrats like Johnson & Johnson and Coca-Cola, but lately I've been slowly shifting toward growth dividend stocks. I'm getting about 150,000 KRW in monthly dividends now—it's not much, but it gives me a strangely reassuring feeling.
Of course, there were periods where I lost money due to exchange rates, but holding on while collecting dividends has kept me relatively at ease. In the long run, I think dividend reinvestment plus averaging out exchange rate fluctuations is the way to go.
For those of you who've been focused on dividend stocks for over five years, I'm curious how you dealt with stocks whose dividends barely increased over time.
6 answers
Agreed, reinvesting is the answer lol
150k a month is decent enough. I also started dividend stocks three months ago, but my unrealized losses are only getting bigger ㅠ
Hmm, not sure about that. Why would you leave dividend aristocrats like Johnson & Johnson and Coca-Cola for growth dividend stocks? Isn't that just floundering around because of exchange rates?
I've been investing in dividend stocks for over 5 years, and I just sold any stock that didn't raise its dividend. The opportunity cost was too big. That said, even if the dividend growth rate is low, it's right to hold on to the ones that pay consistently. Mixing in ETFs like SCHD is also a solid approach.
Oh, I didn't know that. I've heard the compounding effect of dividend reinvestment is bigger than you'd think. Once you hit the 3-month mark, the answer is to just keep going steadily.
Having cash flow does bring psychological stability. But exchange rates are a real variable. I diversify into dollars and even receive dividends in dollars.