As 2024 comes to a close, it’s time to reflect on what has been a phenomenal year for investors. The S&P 500 delivered an exceptional year-to-date return of 28%, far surpassing its historical average annual return of 7.9% since 1928. This remarkable performance is a testament to the resilience and dynamism of the market, particularly in a year filled with economic uncertainties.
While I primarily identify as a passive investor, 2024 marked a new chapter in my investing journey: I ventured into trading individual stocks. This year has been an exciting ride, as I focused on growth stocks aimed at capital appreciation rather than dividends. While I plan to detail my individual stock picks and performance in a future post, I can confidently say that the experience has been both educational and rewarding.
Now, shifting the focus back to dividends, I’d like to provide an update on my passive income streams. A key note here is that I hold VWELX in both my taxable and non-taxable accounts. This fund tends to distribute long-term and short-term capital gains, which I treat as dividend income in my reporting.
In Q4, my taxable account generated $1,611.40 in dividends. For the entire year, this account has produced a total of $3,607.80. Breaking it down, that’s an average of $300.65 per month—a solid and growing stream of passive income.
My Roth IRA, a non-taxable portfolio, generated $680.29 in dividends during Q4. Year-to-date, this account has contributed $888.04 in dividends. While the Roth IRA’s dividend total may seem modest compared to my taxable account, it’s important to remember that all growth within this account is tax-free, enhancing its long-term value for retirement planning.
Combining both accounts, my total dividend income for 2024 stands at $4,495.84—a remarkable 59.51% increase compared to 2023. This growth underscores the power of consistent investing and reinvestment in building a reliable income stream over time.
Beyond traditional dividend-paying investments, I’ve diversified my portfolio with Fundrise, gaining exposure to real estate, private credit, and venture capital funds. Fundrise’s dividend payouts are typically delayed by a quarter. In Q3, I received $43.49 in dividends, contributing to a total of $123.17 for 2024. While these figures are relatively modest, they add an additional layer of diversification and potential growth to my portfolio.
As we head into 2025, I remain optimistic about the opportunities the market holds. Whether through the growth of my dividend income, the performance of my individual stock picks, or the diversification offered by platforms like Fundrise, 2024 has laid a strong foundation for future success.
Stay tuned for more updates as I continue to share insights and strategies from my investment journey. Here’s to another prosperous year ahead!
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