Dividend Portfolio Update: Growth, Strategy, and New Additions

If you’ve been following along with our dividend investing journey, you know how passionate we are about building a portfolio that not only grows in value but also pays us to hold onto it. Yep, we’re talking about those sweet, sweet dividend checks—the kind that show up whether the market is booming or taking a breather. This update is all about where our dividend portfolio stands today, how our strategy has evolved, and the exciting new positions we’ve added recently.

Now, this isn’t just a pat-on-the-back post. We’ll be going over the numbers, breaking down sector performance, and sharing the reasoning behind our latest buys (and sells). Whether you’re a fellow dividend investor or just curious about passive income strategies, there’s something in here for you.

Let’s crack this open and see how the portfolio has been doing.

Dividend Portfolio Performance Snapshot

Here’s a quick breakdown of where the portfolio stands right now, along with some metrics to help you get a bird’s-eye view:

Metric	Value
Total Portfolio Value	$185,200
Annual Dividend Income	$6,870
Dividend Yield (on cost)	4.2%
Dividend Yield (current)	3.7%
Total Return (YTD)	12.4%
Top Performing Sector	Energy
Worst Performing Sector	Real Estate (REITs)
Number of Dividend Payers	32
Dividend Increases This Year	18 companies

What’s behind the growth? Well, a mix of rising payouts, stock price appreciation, and a few smart buys at the right time. We’re not claiming to have a crystal ball—but disciplined strategy and sticking to fundamentals have made a big difference.

How Our Dividend Strategy Has Evolved

Let’s chat about strategy. When we first started, the goal was pretty simple: buy reliable dividend payers, hold them long-term, and reinvest the dividends. But as the portfolio grew, our thinking matured too. Here’s how we’ve adapted our approach:

Quality Over Yield

Early on, it was tempting to chase high yields—who doesn’t love a 7% dividend? But we learned the hard way that high yield often means high risk. Now, we favor companies with consistent earnings, a strong moat, and a track record of increasing dividends—even if the yield is a bit lower.

Example: We trimmed our position in AT&T and rotated into Microsoft. Lower yield? Yes. But higher growth and dividend stability? Absolutely.

Dividend Growth Is King

One-time payouts are great, but compounding is where the magic happens. We love companies that increase their dividend yearly. Think PepsiCo, Johnson & Johnson, and Visa. They may not yield as much today, but in five years? Different story.

Sector Diversification

At one point, we were overexposed to financials. A correction taught us that even “safe” sectors can get rocked. We now maintain balance across sectors: utilities, healthcare, industrials, consumer staples, and a sprinkling of tech.

Monitoring Payout Ratios

We keep a close eye on how much of a company’s earnings go toward dividends. A payout ratio above 70%? We dig deeper. If it’s unsustainable, that dividend might be the first to go during a downturn.

Using DRIP Selectively

While we automatically reinvest dividends in most positions, we’re more strategic now. If a stock looks overvalued, we let the dividends pile up and deploy them into better opportunities instead.

Our Latest Additions (And Why We Bought Them)

Let’s get to the fun part: new buys! We’ve added a few standout names this quarter that align beautifully with our income and growth goals.

🛒 Recent Buys

• Broadcom (AVGO)
• Dividend Yield: ~2.1%
• Why we like it: Strong balance sheet, aggressive dividend growth, and great exposure to semiconductors and AI infrastructure. Plus, their recent acquisition of VMware adds a solid recurring revenue stream.
• Pfizer (PFE)
• Dividend Yield: ~5.5%
• Why we like it: The market’s been tough on Pfizer post-COVID, but we believe the sell-off is overdone. Their pipeline remains robust, and they’re committed to rewarding shareholders even through transitions.
• Realty Income (O)
• Dividend Yield: ~5.8%
• Why we like it: The monthly dividend is a fan favorite, and they’ve managed to keep it steady (and growing) even with rising interest rates.
• Starbucks (SBUX)
• Dividend Yield: ~2.8%
• Why we like it: A brand moat that’s hard to beat, and while recent headwinds exist, we view this as a classic “buy the dip” moment. Strong dividend growth potential over the next decade.
• Xcel Energy (XEL)
• Dividend Yield: ~3.5%
• Why we like it: Utilities may be boring, but this one’s got green energy exposure and a solid history of consistent payouts. A great anchor stock in uncertain times.

FAQs

How often do you update your portfolio?

We do a deep dive each quarter, but we monitor it weekly—especially during earnings season or in periods of market volatility.

What’s your average dividend yield goal?

We aim for an average portfolio yield between 3.5%–4.5%, depending on market conditions. It’s a sweet spot for both income and long-term growth.

Do you ever sell dividend stocks?

Absolutely. While we’re long-term investors, we’re not married to any one position. If a company cuts its dividend, or the fundamentals change drastically, we reevaluate. We sold Kraft Heinz in 2022 after their payout got slashed.

Do you reinvest dividends automatically?

We use a hybrid strategy. Some stocks are on DRIP (Dividend Reinvestment Plan), especially if they’re undervalued. Others, we let cash accumulate and redeploy strategically.

How do you handle taxes on dividends?

We hold most of our dividend-paying stocks in tax-advantaged accounts (like IRAs), but for our taxable brokerage, we account for qualified vs. non-qualified dividends at tax time. If you’re just getting started, it’s worth talking to a CPA.

Any dividend ETFs you recommend?

Sure! We like:

• Vanguard Dividend Appreciation ETF (VIG) – for dividend growth
• Schwab U.S. Dividend Equity ETF (SCHD) – solid yield and quality holdings
• iShares Select Dividend ETF (DVY) – more yield-focused with financials exposure

They’re great for hands-off investors who want dividend exposure without picking individual stocks.

Conclusion

Dividend investing isn’t a get-rich-quick scheme—it’s a slow, steady, and incredibly rewarding way to build long-term wealth. This quarter’s portfolio update shows how far we’ve come, and also reminds us that the market is always evolving. By sticking to fundamentals, being willing to adapt, and staying focused on quality, we’ve managed to grow both our capital and our income.

We’re excited about the new additions, proud of our growing dividend stream, and always looking for the next great opportunity. If you’re building your own dividend portfolio, remember: patience pays—literally.