In this instructional video, award‑winning personal‑finance expert Dominique Broadway introduces dividends as a reliable source of passive income and walks viewers through the complete process of creating a dividend‑paying stock portfolio. She defines what a dividend is, explains the various payout frequencies (monthly, quarterly, annual) and the concept of special versus regular dividends. Broadway then outlines how to locate dividend‑paying companies, citing brokerage screeners, Google searches, and a favorite resource – Investing.com’s dividend calendar – and clarifies the importance of the ex‑dividend date for eligibility. She provides concrete examples (e.g., Meta’s inaugural dividend, Apple’s quarterly payout) and demonstrates how to calculate expected income based on share count and per‑share dividend amounts. The video contrasts lump‑sum investing with dollar‑cost averaging (DCA) as methods to acquire shares, and shows how reinvesting dividends can compound returns over time. Finally, she offers practical next steps, including building a list of target stocks, tracking dividend dates, and monitoring portfolio growth, before ending with a standard call‑to‑action to subscribe and share.
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Do you ever wonder how rich people like have payments coming from all different places throughout retirement and throughout their life? Well, one way is actually from dividends. Now, believe it or not, building a dividend portfolio or portfolio that pays you consistent income via dividends is not difficult at all, and I'm going to share with you exactly how to do it. My name is Dominique Broadway. I'm an award-winning personal finance expert, the founder of Finance is Demystified, and the bestselling author of The Wealth Decision. Alright, so let's jump into first what a dividend is. So a dividend is essentially a company's way of sharing in their earnings or sharing their earnings with you. So as you guys know, if you purchase a stock in a company or purchase a share in a company, you make money multiple different ways. One of those ways being when the value of the stock goes up. But you can also make money if that company pays dividends. Now, these dividend payments can be special dividends, meaning that it can just come whenever a company decides they want to declare a dividend. It could also be something that is consistent, right? It can be a dividend that's literally paid every single month. There's companies that do that. It could be a dividend that's paid every other month. It can be paid every quarter. Etc., etc. It could be annual, but it's at the company's discretion. Now, as I mentioned, this is literally an extra payment that you receive just from holding the shares. So example, let's say if you have 1,000 shares of a company, and this company decides they want to pay a dividend that's $1. So you would multiply 1,000 times $1, and your payment would literally be $1,000, right? So you would get an extra $1,000 payment just for holding those shares. And typically what will happen is that the dividend payment will be deposited right into your brokerage account. And then from there, you can decide if you want to leave it in cash or if you want to have your dividends set to invest automatically. But let's back it up for a second. So if you want to build a dividend portfolio, the first thing you need to do is find stocks that are actually paying dividends. Now, all stocks do not pay dividends. And the reason for this is because they consider that they want to use their money for, you know, other things, purchasing companies, etc., etc. So for example, Amazon specifically, as big as Amazon is, they actually do not pay dividends. They are not a dividend-paying company. That's because they actually consider themselves more in startup mode and they prefer to use their money for research and development, for acquisitions of other companies, etc., etc. Now, Meta, which is also Facebook, recently— well, earlier in 2024, um, decided that they were going to pay a dividend. And this is the first time ever. And I believe their dividend payment is going to be almost 50 cents a share, which is a really great dividend. That one announcement of that dividend, I think it made— I can't remember exactly— it made like Mark Zuckerberg like an extra— it was like $300 or $400 million just from the announcement of that dividend that he'll be receiving like every year extra just because now Facebook or Meta is declaring a dividend, okay? So, the first thing you want to do is find a company that actually pays dividends. That's the first thing you want to do. And you can do that by going straight into your brokerage account and looking for dividend-paying stocks or even just googling some of the top dividend-paying stocks. I'll also share with you guys some of my favorites. I have a list and I'll share with those— that with you in the caption, okay? So, once you find your dividend-paying stocks, then you want to determine how much you actually want to invest into these stocks, okay? This could be a lump sum, this could be an amount that you DCA, which is short for dollar cost average, into the stocks. But essentially, you want to make sure that you're starting to acquire shares into these companies. Now, some people will literally just take lump sums, purchase these shares because they know that they're going to be able to see the value of the shares go up. But they also will be able to get dividend payments from these companies as well. Alright, so now that you've determine which stocks you want to actually purchase. The next step is to actually purchase those stocks into the brokerage company, into the— purchase those stocks at the brokerage firm that you are investing at, okay? Now, once you own those stocks, you will see, "Hey, I have 100 or 1,000 stocks inside of this portfolio." This will allow you, but even before then, to get exact insights of when the dividends are going to be paid, etc., etc. Now, you can also do research on these stocks by just going and researching them on your respective brokerage firm. There's also a really great website called investing.com where you can actually see a dividend calendar. It's one of my favorite hacks. So you can go straight to investing.com, go to their calendar section, pull up dividend calendar. This is going to literally tell you every single company that's paying a dividend every single day. So you can literally say, who is paying a dividend today or tomorrow, right, or next week. And you'll see on there the name of the company, and then you'll see what we call the ex-dividend date. Now, this ex-dividend date literally is just telling us this is the day that you need to be a shareholder of record on file by in order to receive this dividend. So if the ex-dividend date is today, that means that by today at 4 PM Eastern Standard Time, You need to be a holder of record in order to be eligible to receive this dividend payment on, you know, a week from now, okay? So, you can literally go to investing.com, pull up that dividend calendar and look and see what days— I'm sorry, look and see what companies are giving out dividends every single day. That's a true straight-up hack. You can go that way and actually locate and say, "Hey, I'm going to invest in these specific companies because they're paying out monthly." or they're paying out quarterly, or they have really high dividends, etc., etc. Okay? Next, once you look and see that, you can go back and start making a list and getting an idea. Like, okay, I have shares in Apple and they pay their dividend quarterly and their dividend is 26 cents a share. I have shares in Nvidia and they pay their dividends, I think, quarterly or twice a year, I believe, and their dividend is, I don't know, I can't remember, 25 cents, etc., etc. Right? And then you can start to see about how much will I have in dividend income every month or every year. So, if I have 1,000 shares in this company and they pay $1 every quarter, that means that every quarter I'm going to get $1,000, right? So, boom. This company is going to pay me $1,000 every quarter which is $4,000 a year. And as you can see, that's how you start mapping it out. So, I have this company that's paying me $4,000 a year. I'm I have this company that's paying me $5,000 a year. I have this company that's paying me $1,000 a year. Boom, right there, that's $10,000 a year that is straight up passive income just from your dividends. Does that make sense? So that is how you start to build that portfolio over time. And as you continue, obviously dollar cost averaging, buying more shares, what's going to happen? That $10,000 a year will grow from $10,000 to maybe 15, to 20, to 100, whatever it may be, but it will continue to grow. So that is essentially how you dividend hack and how you build your own dividend portfolio. If you enjoyed this video, just do me a favor, hit the subscribe button, share it with a friend, and give me a like, and hopefully I'll see you very soon.
