Time really flies—it's hard to believe we're already in Q4 of 2024! As the year marches on, it's time for another update on my dividend income. In this post, I will be sharing how my investments performed in Q3 and reflect on the progress of my passive income journey.
The third quarter has been challenging for many investors, with inflationary pressures, interest rates, and geopolitical tensions driving market fluctuations. Despite these headwinds, my dividend portfolio remained a source of reliable income. Diversification and a focus on quality dividend stocks helped buffer the impact of market turbulence.
Taxable Account Dividends: A Boost from VTSAX
In Q3, my taxable account generated $825.66 in dividends. This total was significantly boosted by VTSAX (Vanguard Total Stock Market Index Fund), which had a delayed dividend payout from Q2. As a result, I essentially received double the dividends from VTSAX in Q3, adding a nice bump to my earnings. For the year so far, my taxable account has produced a total of $1,996.40 in dividends. If we break this down, it averages out to approximately $166.36 per month—a solid amount of passive income that continues to grow over time.
Roth IRA Dividends: Steady and Strategic
My Roth IRA, part of my non-taxable portfolio, generated $69.33 in dividends during Q3. This figure has remained fairly stable, largely because I haven't contributed new funds to my Roth IRA recently. So far in 2024, my Roth IRA has produced a total of $207.75 in dividends. While this may seem modest compared to the taxable account, it’s crucial to remember that the Roth IRA plays a key role in my long-term financial strategy. The dividends in this account grow tax-free, making it an invaluable tool for retirement. I plan to increase contributions to my Roth IRA starting in Q4, which should further accelerate the growth of my tax-advantaged income.
Fundrise Dividends: Real Estate and More
In addition to my traditional dividend-paying investments, I’ve diversified my portfolio by investing through Fundrise. This platform provides exposure to real estate, private equity, and venture capital funds, offering a broader range of opportunities beyond stocks. While the Q3 dividends from Fundrise haven’t been posted yet, so far in 2024, my investments have yielded $79.68 in dividends. This steady income adds another layer of diversification to my portfolio, and I’m eager to see how these investments continue to perform.
Covered Calls: A New Source of Income
I have also started generating income through a new strategy: covered calls. This involves selling call options on stocks I already own, allowing me to collect a premium upfront. The key is ensuring that the strike price is above the current stock price, so I can hold onto my shares if the options expire worthless. In Q3, I earned $97.02 from covered call commissions, with all my calls expiring out of the money. This means none of my stocks were called away, allowing me to keep both the stocks and the premiums I collected. It’s been a great way to enhance my income without needing to sell any of my positions.
Looking Ahead to Q4
As Q4 begins, I am excited to see how my investments perform over the final stretch of the year. I will be contributing more to my Roth IRA and continuing to explore income-generating strategies like covered calls. Thanks for following along with my dividend journey. Stay tuned for the next update as we close out 2024!
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