High Dividends

 For some reason, April and early May have brought in bumper dividends and other passive income!

This makes me super happy.

I am wondering where to park them.

Should I reinvest the dividends back into the high yielding stocks? Or should I use this opportunity to buy new stocks that I can pride over the fact that the entire purchase was ‘free’?

Recently also looking at higher yielding UCITS ETFs to help balance things out, such as SHYU, VHYD, VHYL. They are listed on the London Stock Exchange and are more tax efficient. US stocks we always end up having to pay 30% withholding tax, which erodes whatever yield we achieve.

My dream is to be able to earn $5-10K of regularly dividends every month passively. Also where the dividends do not erode the NAV of the stock/bond.

Without going into the specifics of my current high yielding portfolio, I need to reduce its volatility and make sure I don’t blindly chase yield. This has happened to me in the past and I ended up being burnt. So definitely some lessons learnt and aiming not to let history repeat itself.

Let’s see if we can achieve that sooner rather than later.