Making Millions off Coke

Money Tip of the Week: Dividend Investing

For this week’s money tip, I’m covering dividend investing, as it’s a great way to create passive income.

There are two key approaches to dividend investing.

• Approach 1: Choose stocks with the highest dividend yield

• Approach 2: Choose companies you believe will stick around for the long term.

I’m a huge advocate for Approach 2 above. Three of my top dividend stocks include Apple (AAPL), Microsoft (MSFT), and Intuit (INTU).

Yes, their dividend yields are tiny.

Yes, it will take much more money to get a larger dividend return.

But, I trust they’re positioned for the long term and continue growing in value.

Let’s take a look at an extreme example of the power of dividend investing:

Dividend investing can be a game changer for your finances. It can provide a steady income stream and typically carries a lower volatility.

If you decide to reinvest the dividends versus taking them as cash, you can tap into compound returns, which will work wonders for your portfolio in the long term.

Warren Buffett doesn’t simply focus on a dividend yield, he looks at the whole picture, both the company and the industry.

Highest Return Dividend Stocks

For those that would prefer approach 1 above, here’s a list of the top dividend stocks by dividend yield from Investopedia.

I haven’t personally invested in the below but I have them on my research list to dig into their business fundamentals a bit more before investing.

I wrote up a lengthy article about the pros and cons of dividend investing, along with how to get started. Click below if you’re interested in learning more.

Side Hustle Spotlight

This week’s side hustle spotlight is dedicated to blogging.

Many will argue that blogging is dead in 2024, but if that were the case, every blog would shut down.

Blogging is a great side hustle because it lets you work on your own terms and dive into topics you love.

You can make money through ads, affiliate links, sponsored content, or even selling your own products. It’s flexible and can be done from anywhere, making it perfect for busy schedules.

In the US, many bloggers start earning between $500 to $2,000 a month in their first year. With time and dedication, some even go on to make over $100,000 a year.

If you don’t want to start a blog from scratch, I found a personal development and productivity blog for sale on Flippa. You’ll need to sign an NDA before viewing the full listing, but I checked out the content and financials and it’s an interesting one to consider.

Interesting Things to Read

A few fellow parents reached out to me recently for additional growth resources.

Click below for a list of what I’m reading this week. I’ll keep this list updated and it’ll range from investing to careers, artificial intelligence, and raising kids.

All of the above reading recommendations are fellow newsletters putting out high-quality content for free.

Make sure to confirm your subscription and if you have any recommended readings, please send them my way.

Thanks for reading, and please don’t hesitate to reach out with any questions.

I love writing content knowing it’s helping at least one family out there.

See you next week,

The Dollar Dad