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The Ultimate Dividend Investing Flywheel Strategy
Dividend investing has long been regarded as a powerful tool for generating passive income and building long-term wealth. By strategically investing in dividend-paying stocks, investors can create a flywheel effect that continually generates income and grows their investment portfolio. In this blog post, I will share my personal systematic approach to dividend investing, focusing on a flywheel strategy that evolves over different phases, with a strong emphasis on risk management and diversification.
Phase 1: Start the Flywheel Spinning (Portfolio size of up to $50,000)
To kickstart the flywheel, invest 100% of your portfolio in high-yield stocks with a monthly dividend payout of 9% or more. This initial aggressive allocation helps generate substantial income right from the start for reinvestment. To mitigate risk, diversify your investments across five different high-yield stocks. This diversification ensures that any potential setbacks from individual stocks are balanced by the overall performance of your portfolio.
