Personal Finance

November Investment Income Update

In November, I made $1,134 in income from investments.

That was comprised of 2 main components:

  1. $1,075 from interest from savings accounts
  2. $59 in dividends from QYLD

QYLD is a new addition to my portfolio.

Why did I invest in QYLD?

Well, I first heard about QYLD from a close friend of mine who I trust and have also done business with. He’s personally invested in it and when I told him I was looking for something with a higher yield than a savings account but relatively stable to protect my principle, he mentions QYLD.

I then spent a good amount of time doing my own research and saw that it’s relatively stable in price and pays a healthy dividend each month.

Of course, there’s the risk that my principle goes down, but if my plan is to hold it for a while, then I will generally ignore any dips or gains in principle – I’m really focused on that cash flow.

QYLD was started in 2013 so I couldn’t do research on how it performed during the last recession. That is my major concern with this investment – how will it perform if we hit a recession?

My thoughts around that are:

  1. Don’t invest a ton of money into it
  2. Invest an amount that I’m ok holding on to through a recession so that if there’s a dip and I have to wait for the price to recover, I can do so while still collecting a dividend and not losing any principle.
  3. If it dips in price from when I bought in and I have to sell because I need liquidity for some reason, the dividends that I’ve been paid will help mitigate the loss.

Now, the potential risks, of course, are not ideal, and of course, I’d prefer my initial investment to be preserved while collecting dividends every month, but I like to look at the downside in any investment that I make and make sure that I’m ok with it. If I am, then great, do it and of course, hope for those things not to happen but if they do, I’m ok with it because I’ve already analyzed it and decided if that happened I’m ok.

Given these, I felt comfortable buying 300 shares to start and test it out.

So far my total principle has remained about the same as when I started, but I received a dividend of $59.

For December, I’ve decided to increase my investment and buy an additional 350 shares. So now my total holdings are 650 shares, which should provide over $100 in dividend income in December.

The plan is still to deploy a good amount of cash into real estate, but I’m not going to force it or buy a bad deal. I’m looking at deals every single day. If you’d like to stay updated on that more frequently, subscribe to my newsletter below where I send updates weekly that I don’t post on my blog.

Past Income Updates: