A few weeks ago I shared my strategy on investing in stocks, which prompted me to do a spring cleaning of my personal stock portfolio on Robinhood, drop some average stocks that weren't really moving, and re-invest more heavily in stocks that pay dividends. My goal is to build a passive income stream with dividend stocks that will grow over time. So I googled what stocks the dividend king Warren Buffet is investing in and decided to follow some of his portfolio strategy. Why not? Seems to be working for him!
I created a handy dividend spreadsheet that shows the stocks, dividend yield (payout percentage per stock) and dividend safety score. A dividend safety score is between 0-100 and shows how likely a payout will happen. Experts recommend sticking with stocks that have a dividend safety score above 60% if that's your portfolio strategy. I also added a column that you can add how much of the stock you own, and what your dividend payment would be. If you're interested in grabbing the spreadsheet to use for yourself, get it below:
If you want to calculate what your dividend payment would be for a stock, multiply the dividend yield rate by the value of the stock to find the dividend per share. Then, multiply the dividend per share by the number of shares you own to calculate your total dividend payment.
What do you think about investing in dividend stocks as a passive income source?
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