Receiving 100,000 Won Monthly from Stock Dividends
I've been gradually investing in dividend stocks since last year, and now I'm receiving about 100,000 won per month on average in dividends. I've mainly mixed US dividend ETFs with domestic high-dividend stocks, and the compounding effect is truly impressive. My goal is to reach 500,000 won per month within 5 years. How do you all invest in dividend stocks?
7 answers
I'm also collecting dividend stocks with a similar goal, and I find exchange rate fluctuations a bit concerning. Since dividends from US ETFs come in dollars, you need to consider that the actual amount you receive changes depending on the won/dollar exchange rate. I'm increasing my proportion of domestic dividend stocks to boost stability.
100,000 won is a small but meaningful amount. Personally, I prefer dividend growth stocks, so I recommend ETFs like SCHD or DGRO. Dividends increasing every year help boost the compounding effect over the long term. Cheering you on toward your goal of 500,000 won per month!
Are you reinvesting your dividends? I'm maximizing the compounding effect by reinvesting dividends back into the same stocks. In 5 years, it'll make quite a difference. Also, you need to consider taxes, so it's a good idea to factor in the 15.4% dividend income tax in advance.
I used to focus more on growth stocks than dividend stocks, but recently I've come to appreciate the appeal of dividends. If you steadily save 100,000 won, reaching 500,000 won seems totally achievable. Just make sure to check the company's financial health, not just the dividend yield—because a dividend cut would be a big problem.
I focus more on total return rather than dividends, so dividend stocks make up only a small portion of my portfolio, but your post has sparked my interest again. 500,000 won per month is a good amount to supplement living expenses. I've heard that U.S. dividend ETFs like VIG or VYM are also worth considering—check them out.
Congratulations! I started with a similar scale, and over time, it's been really rewarding to see the dividends pile up. How do you prepare for the ex-dividend date? I use a strategy of buying in small increments before the ex-dividend date, taking into account the expected drop in stock price.
Wow, starting at 100,000 won a month is great! I'm aiming for 300,000 won a month and mainly collecting dividend ETFs. It's definitely fun once you start feeling the compound interest effect. If you reach 500,000 won a month within 5 years, that's 6 million won a year. It might be a good idea to set a strategy considering the return rate and investment principal relative to your target amount.