If you’ve been reading my posts for a while, you know I love two things: building wealth and keeping life simple. Usually, the financial industry tries to tell us those two things are incompatible. They tell us we need complex derivatives, expensive advisors, and 12-screen trading setups to get ahead.

But then there’s J.L. Collins.

I just wrapped up reading the 2025 Revised & Expanded Edition of his classic, The Simple Path to Wealth, and it is the ultimate refresher on why complexity is the enemy of wealth building. As Collins states:

“The simple truth is this: The more complex an investment, the less likely it is to be profitable.”

From Dad Letters to Bestseller

One of the most charming parts of this book is its origin story. Collins didn’t set out to write a finance classic; he originally wrote these chapters as a series of letters to his teenage daughter, Jessica. She wasn’t interested in money (like most teenagers), but he wanted to ensure she had a roadmap when she was ready.

In this new 2025 edition, we actually get a “full circle” moment. After years of resisting the boring advice, Jessica has finally “given in” and is living the path herself.

As a parent, this is reassuring. While my four year old is way too busy with Bluey, my older two are in high school (boy does time fly)! On some days they humor me, but let’s be honest, they could care less about dad’s investing passion. Nonetheless, I’m hopeful the conversations (and actions) will be a roadmap for their success later in life.

Alright, back to the story…

The Big Idea: Wealth is About Freedom, Not Ferraris

Collins makes it pretty clear. The goal of money isn’t to buy more stuff; it’s to buy control over your time. He calls this “F-You Money”, the amount of cash you need to be able to walk away from a job, a boss, or a situation that drains you, without a shred of panic.

As Collins writes:

“Money can buy many things, but nothing more valuable than your freedom.”

The 3 Steps to Wealth

In a world of “get rich quick” schemes and crypto-hype, Collins strips the roadmap down to three non-negotiable rules. If you get these right, the rest is just noise.

1. Spend less than you earn. (This is the fuel)

2. Invest the surplus. (This is the engine)

3. Avoid debt. (This is the brake)

It sounds almost too simple, doesn’t it? But if you cannot master step one, no amount of investment knowledge can save you. On the flip side, once you master step one, the last two are a happy byproducts.

The Portfolio: The Ultimate Minimalist Strategy

For those of us who love researching stocks (like my “Dow Dividend Fund”), Collins offers a challenging counter-narrative: Stop picking stocks!

His strategy is the definition of “set it and forget it.” He argues that you don’t need to find the needle in the haystack; just buy the haystack.

• The Accumulation Phase: 100% VTI (Vanguard Total Stock Market ETF). You own virtually every public company in the US. It’s self-cleansing (bad companies drop out, new ones get added) and comes with an extremely low fee.

• The Preservation Phase: 75% VTI / 25% BND (Bonds). To smooth out the ride when you retire.

Pretty simple, right? That’s the whole book summed up in one practical step; Invest as much as possible in the VTI ETF, then go live your life.

The Best Kept Secret: Doing Nothing Beats Doing Something

Here is the stat that should make you question everything you see on social media:

According to studies cited by Collins, simply investing in a total stock market index (like VTI) outperforms 83% of actively engaged investors - including the professionals.

That alone has me questioning everything!

Let that sink in. The people who do this for a living, who have teams of analysts and Bloomberg terminals, lose to a simple index fund the vast majority of the time.

So, why don’t we hear this more often?

Because “buy VTI and go to the beach” doesn’t sell ads. Collins explicitly calls out programs like CNBC throughout the book, noting that their entire business model depends on you feeling anxious, uninformed, and glued to the screen. They need you to believe that investing is complicated and fast-moving.

The truth is the opposite. If you just ignore the noise, turn off the TV, and buy the index, you don’t just survive, you win.

A Dividend Investor’s Take

Now, I know what you’re thinking. “I love dividends! Is this strategy for me?”

And to be honest, this is my biggest struggle with the book. Collins does mention that you can supplement his strategy with some dividends, but it’s clear he’s thinking more traditional. Enter the 4% rule.

A lot of the book is dedicated to the “4%” rule, which is a common retirement strategy that suggest you live off (you guessed it) 4% of your portfolio each year.

This means you are reducing your portfolio by 4% every year and hoping you have enough to last.

Us dividend investors think different.

We want to build a portfolio that creates a growing cashflow. Enter Dividends.

While Collins isn’t a dividend investor, the framework works for us, too. If you prefer cash flow over selling shares, you can simply apply his “Simple Path” logic but swap the investment vehicle.

• Instead of VTI (Total Market), you might swap in VIG (Dividend Appreciation) or, in my case, SCHD (US Dividend Equity) to prioritize yield and quality.

• I don’t think a fund like SCHD or VIG will perform as well as VTI over the long haul, but then again it doesn’t have to. The dividend income is nearly 3x the income from VTI.

• Of course risk is involved in all investments, but I’m sure Mr. Collins would argue that VTI is the safest option.

With that said, Mr. Collins does give us a nod.

In fact, there is a small, seldom-mentioned paragraph in the book that secretly validates the dividend investor’s ultimate goal, living purely off the income without touching the principal. Collins writes:

“If I were to seek absolute security, I’d hold 100% VTSAX (or VTI) and spend only the ~1.25% dividend it throws off.”

He admits that living off the dividends is the “absolute security” play. The only difference is that we dividend investors prefer a slightly higher yield (3-4%) so we don’t need millions upon millions to make the math work!

Final Takeaway: Simple is Not Easy

Here is the honest truth that most people miss: Investing is simple, but it is not easy.

A simple money strategy (spending less than you earn) and a simple investment (VTI) are technically all you need. But pulling that off for 20-30 years? That takes discipline. It takes long-term thinking and a dash of frugality in a world that wants you to spend everything you have.

It requires creating small daily habits, like sticking to a budget and automating your deposits, that add up quietly over time.

Spoken like a dad on the baseball field, this game takes a mental toughness that many struggle with. When the market is up? You stick to the plan and keep investing. When the market crashes and everyone else is panicking? You stick to the plan and keep investing.

It’s a test of will, not skill. As Mr. Collins says,

“The tough ones will wake up rich.”

Until next time, keep walking!

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

We often treat the New Year as a race. We sprint out of the gate, adding aggressive targets and heavy expectations to our already overflowing plates.

A close friend once told me that I had too many items on my plate and if I wasn’t careful, I risked dropping the entire dish. I took his advice, took a hard look at life, and ruthlessly eliminated things that weren’t essential.

But old habits are hard to break.

Just yesterday, I told my wife I wanted to read a new book every week in 2026. She laughed and gently reminded me that setting a goal that ambitious would only lead to more stress and quite possibly, failure. (In case you’re curious, I settled on one book a month. 😉)

This struggle to slow down doesn’t just affect my reading list; it bleeds into my money, too.

My investing habits have started to feel rushed. While I’ve managed to simplify my portfolio to 23 holdings, I still find myself habitually refreshing tickers and mainstream headlines. It’s like I’m constantly on a dopamine hunt, waiting for one of my holdings to dip just enough so I can pull the trigger and add to the stockpile.

But if you’ve been reading this newsletter, you know that I believe wealth isn’t built in a sprint. It’s a walk. And a long one at that!

During the holidays, I’ve been thinking quite a bit about these habits; the urge to rush, to consume, to tweak. I realized I need a complete shift in how I approach my days.

My word for 2026 is Transformation.

But true transformation rarely happens by adding complexity. It happens by stripping away the non-essentials to reveal the path clearly. It’s looking at your plate and removing the stuff that doesn’t nourish you.

My strategy for 2026 is simple, but difficult: Move slow. Be intentional.

Instead of a laundry list of resolutions, I’ve distilled my year down to five simple “Less/More” pairings. These are the guardrails that will keep me on the path to financial independence and personal health.

My 5 Goals for 2026

1. Less Rushing, More Pausing

I’ve spent too much of my life hurrying to the next milestone. But wealth requires patience. This year, I want to reclaim the space between the moments and trust the plan I have in place.

2. Less Noise, More Reading

The world is loud. CNBC is loud. Social media is loud. I’m trading the dopamine hits of scrolling feeds and stock alerts for the quiet, deep wisdom found in good finance books.

3. Less Spending, More Appreciating

We often spend because we are bored or unsatisfied. The antidote isn’t just frugality; it’s gratitude. I want to look at what I already have and realize it is enough.

4. Less Tweaking, More Compounding

This is the hardest one for investors. The temptation to “do something” is always there. But real wealth is built in the waiting. I’m stepping back to let my dividend strategy do the heavy lifting.

5. Less Artificial, More Realness

Wealth is useless if you don’t have the health to enjoy it. This is my umbrella for the physical body: Less alcohol, less processed food, less screen time. More water, more whole food, more real life.

How to Build Your Own “Less/More” List

I wanted to share my list not so you would copy it, but so you could see the framework. A “Less/More” list is easier to stick to than a resolution because it acknowledges the trade-off. It tells you what to stop doing so you have the energy to start doing what matters.

If you want to try this for 2026, here is a quick way to start:

1. Identify the Friction

What made you feel tired, anxious, or broke in 2025? Was it the news? The clutter? The comparison game? Write that down on the “Less” side.

2. Identify the Antidote

For every negative input, what is the positive opposite?

• If your “Less” is impulse buying, your “More” might be investing.

• If your “Less” is doomscrolling, your “More” might be a good book.

• If your “Less” is social media, your “More” might be conversations.

3. Make it Simple

Boil it down to two words per side. “Less checking email constantly after 5 PM” becomes “Less work, More unplugged.”

4. Cap it at Five

Don’t try to change everything. Pick the 3 to 5 shifts that will have the biggest ROI on your life.

Transformation doesn’t have to be loud. It just has to be intentional.

I’d love to hear one from your list. What are you doing “Less” of in 2026?

Until next time, keep walking!

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Day 826 | $92,293

The Weight of Financial Clutter

We all know the relief of cleaning out a cramped closet or a messy garage. That physical clutter isn’t just an eyesore; it’s a drain on our time, energy, and mental space.

But what about your portfolio?

If your investment accounts feel just as chaotic - full of forgotten stocks, redundant funds, and complex strategies - you might be suffering from Financial Clutter. Just as minimalism helps us live an intentional life by focusing only on what adds value, decluttering your portfolio helps you focus only on what builds wealth efficiently.

For the dividend investor chasing financial independence, simplicity is the ultimate security.

A minimalist portfolio is an intentional portfolio.

Step 1: The ‘Marie Kondo’ Audit – Identifying What Doesn’t Spark Joy (or Dividends)

The first step in decluttering anything is a brutal, honest audit. Take a deep breath and look at every holding in every account.

1. The Redundancy Trap

In your home, this is having three spatulas. In your portfolio, this is owning six different S&P 500 index funds across three different brokerages, or owning 20 dividend growth stocks when 80% of your income comes from the top 5.

• Action: Identify and consolidate. Do you need three different large-cap value ETFs? Merge them into the single, lowest-cost, most tax-efficient option.

• Personal Note: At the beginning of the year, I had 6 dividend ETFs. I sold 4 and reinvested the proceeds into my 2 favorites: SCHD (Schwab’s Dividend fund) and CGDV (Capital Group’s Dividend Value fund).

2. The ‘Junk Drawer’ Trap

We all have them: those single shares bought on a whim, the speculative stock hyped by a friend, or the “hot sector” fund you bought in 2022 and forgot about. These are investments with no clear place in your dividend or financial strategy.

• Action: Ask yourself: “Would I buy this stock today?” If the answer is no, it’s probably financial clutter. Decide whether to sell it (to harvest tax losses or reinvest in a core holding) or let it ride until it is easier to move.

• Personal Note: My dream car is a Rivian. But I realized that owning this speculative, non-dividend paying stock wasn’t helping me reach my financial independence goals. I took a loss (tax harvesting) and moved on!

3. The Complexity Trap

Are you spending hours tracking five different portfolios, managing individual sector tilts, or calculating tax implications for complicated foreign holdings? This complexity could be draining your time, your most valuable asset.

• Action: Simplify your process. Can you consolidate brokerages or move towards fewer, broader index funds or ETFs?

• Personal Note: I consolidated my Ally and Public accounts into my Fidelity account. Now it’s much easier to track!

Step 2: The ‘Intentional Buy’ Strategy

Minimalists only bring new items into their life with a clear purpose. You need to apply this same intentionality to your stock buys. Define Your Portfolio’s Core Buckets.

Here’s mine:

1. Foundational ETFs: (SCHD and CGDV)

2. Dividend Growth Stocks: (e.g. Visa, Microsoft, United Health)

3. Dividend High Yield Stocks: (e.g. Verizon, Merck, Chevron, Nike)

Every dollar you invest should land in one of these intentional buckets. If a new investment doesn’t clearly fit your defined purpose, think about passing.

Give yourself some grace!

I think its perfectly fine to have one or two stocks that don’t fit your strategy. Mine is Sofi. It’s not currently paying a dividend, although it may one day. But this is my baby. It’s one of the first stocks I bought and has appreciated a ton. It’s one I plan to keep around for a long time.

Step 3: The Behavioral Benefit

Less Clutter = Better Decisions

This is where the power of minimalism truly supercharges your investing behavior.

A complex or cluttered portfolio is an invitation to anxiety and over-trading. When you have 40 stocks to keep up with, you’re constantly looking for reasons to act, which feeds into behavioral biases like:

• Confirmation Bias: You only look for news that validates your existing diverse, complex holdings.

• Analysis Paralysis: Too many choices lead to no action or delayed action.

A lean, clean, (and mean) minimalist portfolio (perhaps 10-20 core holdings) means:

• Fewer Decisions: You spend less time checking stocks and more time living your life.

• Greater Conviction: You know exactly why you own what you own, making you less likely to panic-sell during a market downturn.

• Easier Rebalancing: Your check-in takes minutes, not hours.

The Wrap Up: The Clutter-Free Portfolio

The goal of “A Walk to Wealth” is not just to acquire assets, but to acquire freedom and peace of mind.

Minimalism grants us the freedom from physical possessions. Decluttering your portfolio grants you the freedom from financial anxiety. By applying intentionality, simplicity, and focus to your investments, you shift your energy from managing clutter to growing wealth - making your journey to financial independence steadier and far more peaceful.

Your Homework:

Open your main brokerage account right now and identify one holding you can’t clearly articulate the purpose of. Does it really fit your financial goals or “spark joy”?

If not, maybe it’s time to let it go.

Until next time, keep walking!

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions

Hey friends! If you’re tired of chasing the latest tech frenzy and want to build a rock-solid portfolio that pays you consistently, let’s talk about an old-school champion: The Dow Jones Industrial Average.

I’m sure you’ve heard folks on TV saying “the Dow is up 100 points today.” If you haven’t caught that one lately, it’s because it’s often mentioned alongside it’s younger siblings, the S&P 500 and the Nasdaq - which have been getting all the attention lately.

But what if the Dow isn’t the boring and outdated sibling everyone thinks it is? What if it’s one of the best shortcuts to quality dividend stocks available?

Part I: A Story of 30 Blue Chips (and a Secret Committee)

The Dow Jones isn’t just a index; it’s a 129-year-old barometer of American economy.

The Fun Facts:

The Original 12: When Charles Dow created the index in 1896, it had just 12 companies (think cotton, sugar, tobacco, and coal). Back then, these 12 companies represented the backbone of the US economy. Today, none of the original 12 are left! General Electric (GE) was the last of the original 12 to exit. GE said goodbye in 2018.

The Secret Committee: Throughout it’s existence, there’s always been a mystery in the selection process. The 30 stocks aren’t chosen by some huge algorithm. They are selected by a small, secretive committee of just five people (executives from S&P Dow Jones Indices and The Wall Street Journal). Their job is to pick the 30 companies that best represent the overall health and direction of the U.S. economy.

The Flaw: Though its name suggests simplicity, the Dow uses a quirky, decades-old formula. Instead of using market capitalization (the total value of all shares, which is how the S&P 500 is calculated), the Dow is price-weighted. In simple terms: if Company A has a $300 stock price and $100 billion in market value, it moves the index more than Company B, which might have a $50 stock price but $500 billion in market value. Critics argue this distorts the index, giving more influence to an arbitrary share price than to the actual size and economic impact of the company.

Admittedly, it’s the antiquated price-weighted methodology that has kept me on the outside looking in. If the strategy is old, then the companies inside must be too, right?

From Old-School to AI

From railroads to the internet, the Dow has always been at the center of what makes the US economy move. If you pass by the Dow thinking it’s too old-fashioned, you’d miss companies at the forefront of a new AI revolution. Today, it’s adapting faster than many give it credit for.

Companies like Microsoft, Salesforce, and the latest company added, Nvidia, are leading the charge. But critically, every single company in the Dow - from United Health to JPMorgan - has massive capital to invest in AI to boost innovation and efficiency. When the economy shifts, the Dow’s giants have the money to pivot, making them resilient dividend payers.

Part II: How to Invest in the Dow

One of the easiest ways to own the Dow is to buy a Dow-based ETF. And thankfully, you have a few to choose from:

• DIA (The Benchmark): The standard and most popular Dow ETF. It’s offers the cheapest expense ratio, but it’s price-weighted like the index. The highest-priced stock (not the most valuable or highest-yielding) has the biggest impact. This is the closest you can get to mirroring the index.

• EDOW (First Trust Dow 30 Equal Weight ETF): This ETF attempts to “fix” the price-weighting flaw by giving equal weight to all 30 companies. Every stock has the same influence, which can lead to better diversification and performance when the lower-priced stocks outperform. But it has a significantly higher expense ratio (~0.50%) than DIA, eating into your long-term returns.

• DJIA (Global X Dow 30 Covered Call ETF): A high-income strategy. This fund buys all 30 Dow stocks and then sells covered call options against them. It Generates a very high monthly income stream (often yielding over 10%) from the option premiums, but the strategy caps your upside - if the Dow surges, you miss out on most of the big gains.

• DJD (The Yield Chaser): This one is tempting. It tracks a yield-weighted Dow index, meaning it owns more of the highest-yielding stocks. But here’s the flaw: its strategy forces it to sell the winners (whose prices have risen and thus lowered their yield) and buy the laggards. This drag often leads to lower total returns and slower dividend growth over the long run.

In the chart below, you can see the total return for each ETF over the last 10 years. Keep in mind that JDIA and EDOW don’t have a full 10 year history, but it’s clear that the ETF that follows closest to the index, DIA (even with it’s price-based weighting) has the highest total return at 218%.

These are 4 great options, but they all have flaws that prevents them from being the perfect dividend vehicle.

So what’s the solution? Well, what if you built your own portfolio based on your favorite companies within the 30-stock index?

Part III: Build Your Own Dow Dividend Fund (The Funnest Option)

This is the fun part! You get to act as your own secret Dow Committee, picking the 10-15 best dividend payers from the 30 elite companies.

This DIY approach lets you select companies based on your goals. For dividend lovers like me, you can build your own portfolio that balances high current yield and dividend growth potential.

A 10-Stock Dividend Portfolio: High Quality & High Yield

I spent the last few days running different scenarios to balance yield and growth. Here’s a breakdown of all 30 stocks in the Dow with their dividend yield, 1-, 5-, and 10- year dividend growth rates.

Finally, I landed on this 10-stock “Dow Dividend” portfolio.

• Verizon Communications (VZ) ~6.7% Massive yield and essential service (the ultimate high-income foundation).

• Chevron Corp (CVX) ~4.6% yield Energy giant with high yield and long history of increasing dividends.

• Merck & Co (MRK) ~3.4% yield Rock-solid pharmaceutical giant that funds R&D with strong cash flow.

• UnitedHealth Group (UNH) ~2.8% yield Industry leader with strong growth history that fuels its rising dividend.

• Nike Inc (NKE) ~2.6% yield Global brand strength that supports a growing payout.

• Procter & Gamble (PG) ~2.5% yield The king of consumer staples (Tide, Pampers) meaning dividends through any recession.

• Honeywell Intl (HON) ~1.6% yield Industrial tech giant - a stable grower providing essential equipment for the future of automation.

• Visa Inc (V) ~0.8% yield Low yield, but its dominant financial network leads to super-fast dividend growth.

• Microsoft Corp (MSFT) ~0.7% yield Same as Visa: Low yield, but incredible dividend growth driven by cloud and AI dominance.

• Salesforce (CRM) ~0.7% yield A younger dividend payer, but its enterprise software moat ensures massive long-term cash flow and potential price growth.

The Dow Dividend Portfolio

The selected 10 companies have a total 3.43% average yield and 7.14% 5-year dividend growth.

By building your own basket of 10, you get a clean, high-quality, focused portfolio that is simple to manage, tax-efficient, and aligned with your own dividend goals.

So… how did I do? And what portfolio will you make out of these 30 blue-chip superstars?

Until next time, keep walking!

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

In a world obsessed with more, bigger, and faster, it’s easy to get caught up in the race to accumulate wealth. I’m a firm believer that those who walk to wealth will not only be able to enjoy the journey, but be happier once they reach the destination.

We like to think of happiness as this magical switch that we’ll be able to turn on when our bank account hits a certain number. Deep down, I think we all know that’s not how it works.

In his book, The Art of Spending, Morgan Housel describes money as a multiplier. If you’re already happy and become rich, you’re likely to become happier. But, if you’re unhappy and become rich, you’re likely to become even more unhappy.

Did you know? A study by the National Endowment for Financial Education (NEFE) found that around 70% of lottery winners end up losing their money or going bankrupt within a few years. That’s hard for us to fathom, right?

But let’s be honest. It’s incredibly difficult to not want the bigger, faster, and better life. We’re often told that happiness lies in having a seven-figure bank account, a brand-new luxury car, or a big home. But what if we’ve been looking at it all wrong? What if the secret to a rich life isn’t about chasing more, but about defining your own personal “enough”?

This isn’t about giving up on your dreams or settling for less. It’s about a fundamental shift in perspective. It’s about moving from a mindset of constant striving to one of intentionality and purpose. It’s about crafting a financial life that serves you, not the other way around.

That’s where the S.I.M.P.L.E. Money Framework comes in. It’s a guide I came up with for my family and one that I hope will also help you redefine your relationship with money - moving away from the endless chase for more and toward a life of genuine freedom and contentment.

Let’s break it down!

S: Spend Consciously

Most of us spend on autopilot. We see a sale, we click “add to cart.” Conscious spending is the act of bringing awareness to every dollar you spend. Before you buy something, ask yourself:

• Does this purchase align with my values?

• Am I buying this out of necessity, or out of a desire to impress others?

• Could this money be better used to support a future goal, like paying down debt, saving for a trip, or building up the nest egg?

By connecting your spending to your values, you begin to see money not as something to be spent frivolously but as a tool to build the life you truly want.

I: Invest Intentionally

When we think of investing, we often picture complicated stock charts and high-risk gambles. While those have their place, intentional investing is about more than just numbers. It’s about putting your money to work for the life you’re building.

For some, intentional investing might mean putting money into a retirement account or a dividend portfolio to secure your future. For others, it might be saving up for a down payment on a home or investing in a skill that will help you earn more. The key is to invest with a purpose that goes beyond just earning a return.

M: Minimize Debt

Debt can feel like a heavy anchor, weighing you down and holding you back from the life you want to live. It steals your future earnings and adds a layer of stress to your daily life.

The goal isn’t to become 100% debt-free overnight, but to actively work toward minimizing it. Start with high-interest debt, like credit cards, and create a plan to pay it down. The less debt you carry, the more freedom you have to make choices that truly matter to you - whether its taking a job you love over the money, starting a business, or simply working less.

P: Plan for Freedom

Financial planning often feels rigid and restrictive, but what if we reframed it as planning for freedom? This is about setting goals that will unlock a more flexible and fulfilling life.

Whether it’s saving an emergency fund to create a safety net or mapping out a plan for an early retirement, this is where you connect your day-to-day actions with your long-term vision. This plan doesn’t have to be perfect, but it does need to exist. It’s your roadmap to a life that isn’t dictated by your next paycheck.

L: Live with Gratitude

This might sound like a simple platitude, but it’s arguably the most powerful part of the framework. We live in a culture that constantly tells us we don’t have enough. Enough money, enough success, enough possessions.

Cultivating gratitude is the antidote to our constant wanting. When you can find contentment in your current situation, you break free from the cycle of comparison. A rich life isn’t found in a larger house or a fancier car; it’s found in the simple moments you already have. By appreciating what you have, you realize you might already be richer than you think.

E: Exchange Value

Money is a medium of exchange, not a measure of worth. It’s the way we exchange the value we create in the world for the things we need and want. This step is about shifting your focus from “getting money” to “creating value.”

When you focus on providing value - whether it’s through your job, a side hustle, or a service you provide - money becomes a natural byproduct. This perspective can transform your work from a dreaded chore into a meaningful way to contribute to a mission bigger than yourself.

The pursuit of “enough” is a deeply personal journey. It’s about tuning out the noise of what society says you should have and listening to the quiet voice of what truly brings you peace, joy. and value. By following the S.I.M.P.L.E. Money Framework, you’re not just managing your finances, you’re building a foundation for a truly rich and meaningful life.

Here’s a question to kick off the framework in your own life…

Is there a piece of the framework you already do well?

S: Spend Consciously
I: Invest Intentionally
M: Minimize Debt
P: Plan for Freedom
L: Live with Gratitude
E: Exchange Value

Start with that one. Lean into it and slowly start adding other pieces. It doesn’t need to be hard - just one step at a time!

Until next time, keep walking!

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Hey Friends! It’s been 774 days since I started my walk to wealth journey. It’s hard to believe the portfolio is closing in on my first 100k. We’re currently sitting at $87,552.

Side Note: if you’ve been sitting on the fence about investing, I get it, but I promise you that you won’t regret it. Just get started!

Last week, we went deep on Google, today we are just going deep! It’s going to be a fun one…

Lately, I’ve been digging into Morgan Housel’s newest book, The Art of Spending, and one concept immediately stuck out. And by stuck out, I mean completely changed my mindset on money.

It’s an equation that distills financial happiness down to its core:

Happiness = What You Have - What You Want

It’s a simple, yet profound formula. Take a second to soak it in.

I think most of us stop on the first half of the equation, chasing “What You Have” as the key to happiness.

But here’s the catch: If we stop there, we’ll always be on the hunt for more.

The real magic happens on the “What You Want” side. Because the fewer desires we chase, the easier it is to feel fulfilled by what we already have.

That’s where comfort and contentment collide: Comfort is having enough, but contentment is wanting less.

I believe understanding the subtle difference between these two is the most important lesson on our journey to genuine wealth. Let’s unpack this!

Being Comfortable is an External Metric

To be comfortable, in a financial sense, is to achieve a state of ease and security based on your external reality. It means your resources consistently cover your needs and a good portion of your wants. It’s the peace of mind that comes from:

• A healthy savings cushion.

• An income that supports your lifestyle without constant struggle.

• The ability to pay bills, travel, and handle unexpected expenses without worry.

Comfortable is your financial circumstances relative to your expenses. As Housel suggests, money is an excellent tool for buying this comfort and the independence it affords. It minimizes stress and buys you time. Two ingredients helpful for a better life.

Being Content is an Internal State

Contentment, however, is an entirely different beast. It’s an internal psychological state: a deep sense of satisfaction and appreciation for your current life, regardless of your exact financial status.

Contentment is the ability to find joy in what is, rather than being distracted by what could be. Housel argues that,

“enduring happiness is found in contentment, so those happiest with money tend to be those who have found a way to stop thinking about it.”

He also suggest that money is like leverage.

If you’re already happy and get more money, you’ll most likely be more happy. Those who are unhappy when they acquire money, usually end up being more unhappy.

Contentment liberates you from the endless cycle of wanting more. It allows you to value, appreciate, and even marvel at your money without letting it control your identity or personality.

The Moving Goalpost

Here is the crucial distinction:

You can be financially comfortable but profoundly discontent. If your desires (the “What You Want”) continuously expand with every raise you get, you’ll feel like you’re falling short. This is the core problem of lifestyle inflation, where financial comfort is quickly replaced by new, more expensive aspirations. The comfortable life can quickly become a treadmill.

Conversely, you can be profoundly content with a modest, functional income because you have a firm handle on your desires. This person has mastered the “What You Want” side of the equation, making a modest “What You Have” feel like an abundance.

Contentment is the essential ingredient that converts financial comfort into sustainable happiness. Without it, comfort is just a temporary fix, quickly overshadowed by new expectations and desires.

A Walk to Wealth Contentment

So, if we agree that contentment is the ultimate key to Housel’s happiness equation, how do we cultivate it? Here’s a few practical ways I’ve been leaning into contentment. Maybe they will help you along your journey as well.

1. Define Your “Enough”: Stop letting society or your neighbors dictate your goals. Determine the level of comfort that grants you independence, and consciously try to resist letting your desires rise much beyond that point.

2. Practice Intentional Spending: Housel’s antidote is to “spend for utility, not status.” (Another great chapter in the book!) If a purchase doesn’t genuinely improve your life, it’s likely a desire born from comparison—and it won’t lead to contentment.

3. Appreciate the Current Moment: Spend less time thinking about the money you’re trying to make, and more time enjoying the life you’ve already built with the money you have.

Being financially comfortable is a necessary and worthy goal on our walk to wealth. But true freedom lies not in the size of the numerator (What You Have), but in mastering the denominator (What You Want).

As I’ve been reading through The Art of Spending, I’ve been collecting quotes left and right and want to leave you with this one.

“The person who has everything but wants even more, feels poorer than the person who has little but wants nothing else”

Let me know what you think about this style of post. Too deep or just right?

Until next time, keep walking!

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Welcome to the First Post in my “Know What You Own” Series!

If you’re new here, I’m a full-time designer sharing my journey to financial freedom through dividend investing. While I love sharing my personal experience, I’m not a financial advisor or expert so do you own research and due diligence before making any investments. Consider this a fun, entertaining read!

Let’s dive in!

Peter Lynch, the legendary fund manager who ran Fidelity’s Magellan Fund from 1977 to 1990, believes that ordinary people can outperform professional investors.

His secret? Stick to what you know.

Lynch argues that everyday folks (like you and me) can spot great companies in our daily lives – from the products we use to the services we rely on – long before Wall Street catches on. That coffee shop you can’t stop visiting? That app your kids are obsessed with? These real-world observations can be an open door to building lasting wealth.

By understanding the businesses behind the stocks, rather than just chasing trends or numbers, investors can make smarter, more confident decisions. This “know what you own” approach turned Magellan into a powerhouse, delivering jaw-dropping annual returns of 29% during his tenure.

Inspired by Lynch, I’m launching this series to break down the companies in my own dividend portfolio. I hold around 25 stocks, focusing on quality businesses with strong moats and growth potential.

Alphabet Inc. (GOOGL), the parent of Google, makes up 7% of it – my second-largest position.

Why Start with Google?

Honestly, it’s a fun one! From searching for your next vacation spot to self-driving cars taking over cities like Phoenix, Alphabet touches so much of our modern life.

Plus, as a tech giant evolving into a dividend payer, Google shows how even “growth” stocks can fit a long-term, dividend investor’s plan.

Oh yeah, Google has also crushed the market over the last 10 years.

Let’s unpack it as of mid-October 2025, covering its dividend path, moat, and risks.

Part 1: The Dividend Story – From Fast Growth to Steady Income

I focus on dividends in my portfolio, and Alphabet takes up about 7% of it - which may be surprising as tech companies usually spend all their money on growth, not dividend payouts.

But in 2024, Alphabet started a quarterly dividend and I saw this as an opportunity to add some growth to the mix. As of October 2025, the yield is around 0.35%. I know, I know - that’s low! Not anywhere close to the type of income you can retire on, but hear me out…

The recent dividend hike was also a let down at just 5%, but when we take a deeper look, we can see some huge dividend potential. The payout ratio – how much of earnings goes to dividends – is only about 7.5% of adjusted earnings and 15% of free cash flow. That’s tiny compared to older companies in my portfolio like Procter & Gamble and Target (around 60%).

Google’s tiny dividend means two things:

1. Strong Safety: The dividend is unlikely to get cut, even in tough times.

2. Room to Grow: With over $80 billion in yearly free cash flow, they can raise dividends by 20-30% each year without cutting back on investments.

In the end, I own Alphabet for its mix of stock price growth (up 25% so far in 2025) and future dividends. It’s like a young version of a reliable dividend stock.

Part 2: Breaking Down the Moat – Why Alphabet Stays Ahead

Uncle Lynch likes simple businesses, but Alphabet (like many other tech giants) has a ton of layers. Its moat comes from huge size, special data, and products that work together.

Before peeling back those layers, here’s a quick big-picture view of its revenue segments. Aka - How Google makes money.

Google earns revenue from each of these segments. Here’s a look at the Q2 2025 figures (in billions) with year-over-year growth:

• Google Search: $54.2 (up 12%) – Ads from search results and other Google properties like Maps and Gmail.

• YouTube Ads: $9.8 (up 13%) – Advertising on YouTube videos and Shorts.

• Google Network: $7.4 (down 1%) – Ads served on partner websites through programs like AdSense.

• Subscriptions: $11.2 (up 20%) – Recurring revenue from YouTube Premium/Music, Google One storage, app store fees, Pixel devices, and AI chat bots like Gemini.

• Google Cloud: $13.6 (up 32%) – Cloud computing and AI services.

• Other Bets: $0.4 (up 2%) – Experimental ventures like Waymo and Verily.

Overall, Alphabet’s total revenue hit $96.4 billion in Q2 2025, up 14% from the prior year (source).

Now, let’s zoom in on the key strengths within these areas.

Google’s Money Makers

Google Search: The Mothership

You probably know Google for search. Just “Google” it, right? Lately there’s been a new verb in town, “ChatGPT it”. With all the popularity you may not realize that Google is still quietly growing their own AI chat services, Gemini. And Google’s search still holds 90% of the global market as of September 2025.

It’s slipped a bit but still rules. Why? More users mean better data, which improves results and draws more ads. This segment, which includes ads on Search and other sites like Maps and Gmail, brought in $54.2 billion in Q2 2025 - profits that pay for other areas.

YouTube Ads: A Huge Video Leader

YouTube often gets overlooked, but it’s massive. It has 2.5 to 2.7 billion users each month. That’s way more than Netflix’s 300 million paid users. This ad revenue stream hit $9.8 billion in Q2 2025, up 13%!

In fact, YouTube’s advertising revenue is almost as high as Netflix’s entire business!

Does Google have a secret advantage or something? I think so! Endless free content from users, plus smart suggestions that keep people watching longer than on other sites.

Google Network: The Partner Ad Engine

This segment generates revenue from ads placed on third-party websites and apps through Google’s network, like AdSense for publishers. It earned $7.4 billion in Q2 2025, though down slightly 1% year-over-year. I believe this is where Google is seeing the consumer shift from tradition search to AI.

The moat here is Alphabet’s vast ecosystem of publishers and advertisers, powered by advanced targeting that matches ads efficiently.

While growth is slower than other areas, it provides stable, diversified ad income. I mean, you can’t win them all, right?

Subscriptions: The Recurring Revenue Stream

This segment includes subscription services like YouTube Premium and Music, Google One (cloud storage), Gemini, Play Pass, and revenue from hardware sales like Pixel phones and Nest devices, plus app store commissions. It grew strongly to $11.2 billion in Q2 2025, up 20%

The advantage: High-margin recurring fees create sticky user loyalty within the Google ecosystem, turning one-time users into ongoing payers.

Personally, I backup all my computer files on a paid Google Drive plan, but I started with the free tier. Sure, I only pay a few bucks a month, but I’m getting close to hitting the next tier. Multiple this over millions of users, and you have some steady revenue coming in month after month.

Google Cloud: The Growth Side

Think about how much content AI has added to the digital world in recent years. Not to mention how much more reasoning these large language models required. That digital space has to live somewhere. And that somewhere is massive servers sitting in high-tech data centers.

Google Cloud (GCP) is third largest behind AWS (Amazon) and Azure (Microsoft), but it’s catching up. In Q2 2025, it made $13.6 billion, up 32% from last year – faster growth than AWS (18%) and Azure (28%).

GCP stands out with special chips made for AI. Plus, built-in developer tools making it hard for customers to leave.

Gemini, Alphabet’s advanced AI model, drives revenue across Subscriptions and Google Cloud. For consumers, Gemini Advanced is bundled into Google One subscriptions, boosting that segment’s growth with premium features like smarter assistants and content creation. In enterprise, Gemini powers Google Cloud’s generative AI tools, helping businesses build custom apps and analyze data – a key reason for Cloud’s 32% jump.

Side note: The other day, my 4-year old asked me what kind of bug landed on the trampoline. When I told him I wasn’t sure, he quickly responded with, “Ask Gemini.”

As of mid-2025, Gemini reaches 450 million users monthly, integrated into Search for quick answers and Workspace for productivity. This AI edge strengthens Alphabet’s moat, turning data into innovative services while countering rivals like ChatGPT.

Other Bets: Waymo and More

When it comes to self-driving cars, most of us think of Tesla first - thanks to their incredibly brilliant (and outspoken) leader, Elon Musk. But once again, Google is quietly dominating in the background.

Waymo completes roughly 250,000 trips per week—averaging 24-30 trips per vehicle per day, which demonstrates significant reliability (source).

Tesla’s pilot robo taxi program in Austin reported 7,000 total miles covered across all vehicles in its first month, translating to less than 20 miles per vehicle per day, with far fewer daily rides per car (source).

So yeah, Waymo is taking some serious action.

This segment, including health tech (Verily) and drones (Wing), generated $0.4 billion in Q2 2025.

While small, these bets leverage Alphabet’s data edge for future growth. Alphabet’s moat – big scale, private data, and linked products – is wide. Copying it would cost a fortune.

Part 3: Solid Finances and Key Risks

Alphabet has a strong balance sheet: $95 billion in cash and low debt. It makes over $80 billion in free cash flow yearly. This covers big AI spending ($50 billion in 2025) and new dividends.

But Risks Exist:

1. Government Regulation: Big tech companies like Google are always under the microscope. In August 2024, a U.S. judge ruled Google illegally monopolized search. But in September 2025 remedies, Google won big - The court rejected DOJ’s calls for divesting Android or Chrome, saying it could hurt consumers, innovation, and partners (source). Google is never out of the woods as EU and global probes persist.

2. AI Changing Search: I think this is the big one - New AI like chatbots could replace how people search. ChatGPT has 800 million weekly users, and young people often use AI instead of Google. But Google’s share is still 90%, and Gemini reaches 450 million users monthly, although much smaller than ChatGPT.

3. High Spending: While Google does hold a lot of cash, building for AI and cloud costs a lot, which can slow profits short-term. Google has to keep pushing innovation to keep their lead.

Do You Know What You Own?

This isn’t just a search engine company. It’s an interconnected system of dominant platforms, cutting-edge AI, vast data, cloud infrastructure, and moonshot projects – all backed by fortress-like finances and the best talent in the industry.

Should You Buy?

Morningstar rates Alphabet with 3 out of 5 stars, indicating it’s fairly valued, with an estimate of $237 per share, a wide economic moat, and medium uncertainty.

For me? I’m technically buying Google every single week – but that’s because I dollar-cost average into all my portfolio stocks consistently. As a long-term investor, I’m not trying to time the market or catch the perfect entry point. I’m focused on steadily building positions in high-quality businesses that I understand and believe will compound value over decades.

Whether Alphabet belongs in your portfolio depends on your goals, risk tolerance, and timeline. But hopefully, now you know exactly what you’d be owning!

Let me know in the comments what you think about this type of article. Do you own or plan to own Google?

Until next time, keep walking!

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Wouldn’t it be great to have a ready-made list of high-quality stocks as a starting point for research?

Instead of spending hours sorting through thousands of options, you could focus on a curated group of reliable companies - kind of like shopping at Costco or Sam’s Club, where they may not have everything, but what’s available offers great value. I recently discovered a group that fits this description perfectly: the Dividend Achievers.

Dividend Achievers are companies that have raised their dividends every year for at least 10 consecutive years.

If You’re New Here… I’m Jeremy!

Nice to meet you! I’m on a journey to financial freedom, and I want to take you along! I’m building an investment portfolio based on high-quality dividend stocks, with the ultimate goal of living off the passive income they generate. Until then, I reinvest all dividends to buy more shares of these great companies, compounding my wealth as I walk towards that goal.

Along the way, I pass on everything I’m learning to give you some fresh ideas! Okay, back to stock shopping…

Why Focus on Dividend Growth?

Dividend growth investing is all about investing in companies that regularly increase their dividends over time.

Why does this matter? Because companies that consistently raise their dividends tend to be financially healthy, have stable cash flows, and operate their businesses responsibly.

Over years, these growing dividends help your investment income keep pace with or even outpace inflation, giving you a steady stream of cash that can grow year after year. Plus, companies that increase dividends regularly tend to be resilient during tough economic times, which makes them good long-term investments.

How to Find Top Dividend Growth Companies

With over 4,000 stocks in the US alone, it’s hard to know where to look. Much less, narrow your focus to the best companies.

Dividend Achievers are companies that have raised their dividends every year for at least 10 consecutive years. This focus on steady dividend growth helps identify businesses that prioritize rewarding their shareholders.

These companies are diverse and cover virtually every sector—think technology, healthcare, finance, real estate, and more - and they form a large universe of over 300 companies.

Unlike some other dividend groups that are very exclusive, Achievers include newer dividend growers along with well-established ones, giving you a broader pool to consider.

How Do They Compare to Aristocrats and Kings?

Dividend Aristocrats and Kings are popular groups of stocks known for their exceptional stability. Aristocrats are companies that have grown there dividends for 25+ years and Kings boast over 50+ years of growth.

On the surface, this may sound like a better starting point, but these elite groups often cover fewer companies and tend to be in slower-growth sectors like consumer staples. It makes sense if you think about… Once you hit 50+ years of growth, its hard to keep the streak alive so a lot of these companies raise their dividends just enough to stay on the list.

Dividend Achievers, on the other hand, include companies that may be younger but are still committed to increasing dividends - a good mix for growth and income.

Why are Dividend Achievers a Great Starting Point?

• Fresh Opportunities: Many Achievers are growing their dividends at a faster pace than the long-time aristocrats or kings.

• More Sector Diversity: Unlike Aristocrats and Kings, which are often concentrated in certain sectors, Achievers span across technology, healthcare, finance, real estate, and more.

• Potential for Higher Total Returns: These companies can provide both rising income and capital appreciation, making your investment grow from multiple angles.

Meet PFM, the Dividend Achiever ETF

One easy way to invest in these companies is through the Invesco Dividend Achievers ETF (Ticker: PFM). This fund tracks an index of companies that have increased dividends for at least 10 years. Today, it includes over 300 holdings, with big names like Apple, Microsoft, and JPMorgan Chase.

Over the past decade, this ETF has delivered strong returns - around 12% per year - while steadily increasing its dividends.

While those returns are stellar, some companies in the Achiever’s list are dragging down the fund’s dividend growth. The last decade’s dividend growth is 4.36% and the last 3 years is actually showing negative growth at -0.51%.

Why Picking Stocks May Be Better

Buying just the ETF is simple, but it can include companies that aren’t your top choice. Picking individual stocks from the Achievers list allows you to:

• Avoid management fees or expense ratios (PFM has a 0.52% fee, which is higher than what I like especially compared to one of my favorite ETFs, SCHD, which is only 0.06%)

• Focus on companies with higher yields or faster growth (As discussed, the average dividend growth for all Achievers has dragged recently)

• Customize your portfolio to match your goals and risk tolerance

Four Inspiring Dividend Achievers

Let’s look at a few individual companies to see how they stack up. Here’s a quick intro to four stocks that exemplify what Dividend Achievers are about:

1. ADP (Automatic Data Processing)

A global leader in payroll and HR services, ADP helps businesses manage employee data and payroll. Chances are, your paycheck is made possible thanks to ADP! It pays a dividend yield of about 2.11%, with dividends increasing roughly 12% annually over the past decade. Its payout ratio is about 60%, showing it balances growth with dividend safety.

2. MRK (Merck & Co.)

A major pharmaceutical company that makes medicines, vaccines, and healthcare products for humans and animals. Merck offers a dividend yield of around 3.63%, with over a 6% dividend growth rate in the last 10 years, and a payout ratio of about 40%, providing both income and stability.

3. INTU (Intuit)

Known for financial software like QuickBooks and TurboTax, Intuit has a lower yield of about 0.70%, but it has grown dividends at a rate of 15% annually over the past decade. It maintains an extremely low payout ratio around 20%, suitable for investors seeking more growth.

4. ACN (Accenture)

A global consulting and tech services company that helps businesses with digital transformation. It offers a dividend yield of roughly 2.6%, with a dividend growth rate of over 13%, and a payout ratio of under 50%.

These are 4 companies I have on my watchlist as all look to be fairly valued, if not undervalued and offer a great mix of current dividend yield and future growth.

What About The Risks?

Unfortunately, there’s no free lunch when it comes to investing.

Even though these companies have grown dividends for at least ten years, that’s no guarantee it will continue forever. Difficult times can cause even the most reliable companies to pause or reduce dividends. Plus, like any stock, Achievers can be affected by market swings and interest rate changes. It’s important to understand that no investment is risk-free, especially in the stock market.

Ready To Go Shopping?

Starting with the Dividend Achievers list puts you in front of the “Costco” shelf of proven companies: a pre-vetted group delivering value, reliability, and often, both yield and long-term compounding. While ETFs like PFM make it simple to access this universe, doing your own stock research can help you build a more tailored, cost-efficient portfolio—one that balances income and growth over the long term.

What Dividend Achievers do you have on your watchlist? Let us know in the comments below!

Until next time, keep walking!

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

I’m excited to share my latest AI project, Wealth Walk—a real-time portfolio tracker designed to let you follow every move of my investment journey. Every business day, I invest into 8 hand-selected dividend growth and covered call ETFs, and you can see every dollar and milestone in action at wealthwalk.app.

Wealth Walk is built on my signature strategy: pairing the steady paychecks of dividend growth investing with the pay boosts of covered call ETFs. The goal? Document my progress toward financial independence - and help spark your own journey!

Note: for those interested, I built this with Bolt and am currently powering the data with Google Sheets and the SheetsFinance extension. It may take a few seconds to load.

Let’s Take an App Walkthrough

Dividend Income Counter: Celebrate Fun Milestones

Watch the dividend income grow - and see when it hits fun, motivational milestones like covering a Starbucks coffee, a car payment, a mortgage, all the way up to work-optional income. Each marker is a reminder of how steady progress adds up.

Portfolio Metrics: Dashboard at a Glance

• Portfolio Value: Real-time total value, with daily and all-time gains.

• Annual Income: My current projected yearly dividend total with a monthly breakdown.

• Yield on Cost: My true yield based on dollars invested - proof of the dividend-growth “pay raise.”

• 3-Year Dividend Growth: The average annual pace my dividends have grown over the last three years - fuel for real wealth-building.

Portfolio Performance Chart: Visualize Progress

See how each fund stacks up to the overall portfolio. This chart brings the journey to life, showing how compounding, market swings shape long-term results.

Top Individual Holdings: The Real Engine

Possibly the coolest part: this section breaks down the top 35 individual companies hiding inside the 8 ETF portfolio. For each company, see its sector, weighting, and presence across multiple funds.

Here’s my current top 10 by portfolio weight - these are the businesses really driving the results:

• MSFT (Microsoft): Tech powerhouse and dividend giant.

• AAPL (Apple): World-class tech and cash flow machine.

• NVDA (Nvidia): Accelerating growth in AI and data.

• CVX (Chevron): Stable energy dividends.

• JPM (JPMorgan Chase): Financial sector leader.

• META (Meta Platforms): Growth and profits in digital media.

• RTX (RTX Corporation): Major player in aerospace and defense.

• ABBV (AbbVie): Healthcare strength and growth.

• V (Visa): Payment tollbooth with global reach.

• KO (Coca-Cola): Iconic consumer staple with reliable dividends.

• Curious about the rest? The app shows all 35, giving you new research and tracking ideas!

Sector Allocation: Know Your Diversification

See exactly how the portfolio is split among sectors like Technology, Consumer Staples, Financial Services, and Real Estate. This helps me balance growth, stability, and opportunity - without overexposure to any one area.

At the top right now:

• Technology (9.1%)

• Consumer Staples (4.6%)

• Financial Services (4.3%)

• Real Estate (3.9%)

Individual Holdings: Meet the ETFs

The entire portfolio is based around 8 funds proving how simple the strategy really is. See how many shares I hold, dividend yield, expense ratio, and more.

• SCHD (Schwab US Dividend Equity): The “steady Eddie,” focusing on high-quality, high-yielding U.S. dividend stocks at a low expense ratio.

• CGDV (Capital Group Dividend Value): Fast-growing dividends and a unique strategy with active management from professional analysts.

• FDVV (Fidelity High Dividend): A blend of yield and growth, bringing in established leaders, with a tilt toward tech.

• SPYD (SPDR Portfolio S&P 500 High Dividend): Loads up on S&P stocks with the highest current yields.

• DIVO (Amplify CWP Enhanced Dividend Income): Combines growing dividends with covered call premiums—an “income accelerator.”

• RDVI (FT Vest Rising Dividend Achievers): Prioritizes companies growing dividends year after year with a cover call overlay.

• KNG (S&P 500 Dividend Aristocrats): Only stocks that have raised dividends for 25+ straight years creating dependable income.

• RLTY (Cohen & Steers Real Estate Opportunities): A real estate play to diversify and boost yield with stability.

  
  Each ETF brings unique strengths - together, they power my “one-two punch” strategy combining dividend growth ETFs (for long-term compounding) and covered call funds (for income boosts).

Whats Next for the APP?

In the coming weeks, I’ll be diving more into the 8 ETFs and top holdings. I think it’s going to be a fun journey!

Maybe this is the dreamer in me, but I’d love to know: Would an app like Wealth Walk help you build wealth and reach financial freedom? Drop me a comment or message! Maybe one day we can bring it to life.

Thanks for walking with me - remember, every step counts!

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

When I first started investing on my own, my head was spinning. I was constantly adding stocks to my portfolio based on what I heard on TV, YouTube, or from friends. I got so caught up in the noise that I lost sight of my goals.

Honestly, I never took the time to think much about why I was investing. Like darts, I was throwing money at a bunch of ideas hoping one would hit the bullseye.

The good news is, you don't need to be a dart expert or have a finance degree. You just need a simple, personalized plan.

As a designer, my job is to take complex ideas and make them simple and actionable. I've applied that same mindset to my own investment journey, and after growing my portfolio to over $70k in just two years, I've discovered a powerful, easy-to-follow framework.

This isn't a guide to picking the next hot stock. It's a simple, 3-step framework to help you create your own investment strategy, ignore the noise, and start making real progress.

Step 1: Define Your Goal (Your North Star)

Before you can even think about what to invest in, you need to know why you're doing it. Your goal is your "North Star.” It's what will keep you motivated when the market gets volatile and the journey feels long. Without a clear "why," it's easy to get distracted and give up.

Take a moment to ask yourself some powerful questions:

• Do you want to retire early to spend more time with your family?

• Are you trying to create a college fund for your kids?

• Is your goal to build a safety net?

• Are you aiming for generational wealth—something you can pass down?

My Example: For me, my goal is two-fold: to retire early and build generational wealth for my kids. This is my motivation for every decision I make, and it keeps me focused.

Step 2: Understand Your Timeline (Your Marathon Pace)

Now that you know your destination, let's figure out how long it's going to take to get there. Think of this as setting your "marathon pace." Are you sprinting toward a short-term goal or running a long-distance race to financial independence?

Your timeline is a huge factor in how much risk you can take on. An investor with a 30-year timeline can handle more market volatility, while someone nearing retirement needs a more stable, income-focused approach.

My Example: I'm a few days from turning 43, and I honestly feel a bit late to the party. But I'm committed to my goal of reaching financial independence within the next 10 years. This shorter timeframe is a huge factor in the strategy I've chosen.

Step 3: Create Your Plan (Your Unique Strategy)

This is where the magic happens. Your plan is the specific strategy you'll use to reach your goal within your timeline. Remember, this isn't my plan - it's your plan. I'm just here to provide a framework that's working for me, so you can build one for yourself.

Here are the key components of a plan:

• Investment Type: What assets will you focus on? Stocks, ETFs, bonds, real estate?

• Investment Style: Will you focus on growth, value, dividend growth, or a high-yield strategy?

• Investment Frequency: How often will you invest? Consistency is the most powerful part of any plan.

• Mindset: How will you stay disciplined when the markets get tough?

A quick note for step 3: It’s completely normal if this step feels the most intimidating. The world of investing can seem like a foreign language. But don’t get stuck here. The goal is to create a simple framework you can start with, not a perfect, bulletproof plan. Your strategy will evolve over time as you learn and gain confidence.

My Example: To achieve my goal, I'm focused on a strategy that combines stable income and steady growth. My portfolio is built on dividend-growing companies and proven covered call ETFs. This plan is designed so that I can eventually live off the income while the portfolio continues to grow and create generational wealth.

Ready to Walk It Out?

Creating a plan is a powerful first step, but a plan is just a piece of paper without the courage and discipline to walk it out. That's the real journey and you don't have to do it alone.

This is exactly why I started A Walk to Wealth. It’s a place where I share my progress, my portfolio updates, and the lessons I'm learning along the way. If you're ready to stop thinking about wealth and start taking action, I invite you to join our community.

Until next time, keep walking

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Ever Feel Like You’re Walking at a Snail’s Pace?

What if there was a path that not only took you where you want to go but also picked up speed along the way? That’s the idea behind Kevin Simpson’s Book, "Walk Toward Wealth." It’s a smart and simple approach that combines the steady power of dividend investing with a clever trick to boost your income: covered calls.

This post will break down how Simpson's method works, showing you how these two ideas can come together to create a powerful passive income snowball. And stick around, because at the end, I'll give you a sneak peek at my new project, Wealth Walk, where I’m putting this exact strategy into action with six different dividend funds.

The Foundation: Your Dividend Engine

The heart of the "Walk Toward Wealth" strategy is a solid portfolio of dividend-paying stocks. But we’re not just talking about any old stocks. The key is to find great companies that consistently increase their dividends year after year. Think of it like a paycheck that gets a raise without you having to ask.

The magic here is in the compounding. When you reinvest those dividends, they buy you more shares. Those new shares then generate even more dividends, which buy even more shares.

It's a powerful cycle that builds on itself, creating a stream of income that grows bigger and bigger over time. This is your foundation—a steady, reliable engine for your passive income.

The Accelerator: Selling Covered Calls

If dividend investing is your engine, then covered calls are the turbo boost.

A covered call is a strategy where you sell someone the option to buy a stock you already own at a specific price. In return for giving them that option, they pay you an immediate cash payment called a premium.

Here's why this is such a game-changer:

1. Instant Cash: The premium you get is yours to keep, no matter what happens. You can take that cash and buy even more dividend stocks, making your passive income snowball grow even faster.

2. Lowering Your Cost: The premium effectively lowers the price you paid for your shares. It's a great way to make a little extra money while you hold onto your investments.

3. Making the Most of Your Stocks: Even if your shares get sold (which can happen if the stock price goes up enough), you still make a profit. You get to keep the premium, and you sell the shares at a higher price than you bought them for. It’s a win-win.

What’s the catch? Well, you could lose a little of the upside if a stock shoots up quickly and get’s sold (aka - called away). You still get the premium and the higher price up. But you miss out on any profit after the strike price. You win some. You lose some, I suppose.

The Synergy: A One-Two Punch for Income

The real brilliance of Simpson’s approach is in how these two strategies work together. You're not just waiting for dividends to come in; you’re actively generating more income from your portfolio to fuel its growth.

The cycle looks like this:

• You get dividends. (growing every year)

• You sell covered calls and get a premium.

• You use both the dividends and the premiums to buy more shares.

• More shares mean more dividends and more opportunities to sell covered calls.

This creates a powerful loop that accelerates your progress toward financial freedom. It’s a more hands-on way to build passive income, but it can get you to your goal a lot faster.

But What About the Nitty-Gritty?

Now, here’s where things get interesting. The "Walk Toward Wealth" book dives deep into the details of running a covered call strategy—the expirations, the strike prices, the management of a full portfolio. It's a lot of work!

And after reading through it, I realized that while I love the strategy, I’d rather leave the day-to-day execution to the pros.

This is where ETFs (Exchange Traded Funds) come in to save the day!

These funds offer a low-cost, hands-off way to implement a covered call strategy. You buy the fund, and the fund's professional managers do all the heavy lifting—picking the dividend-paying stocks and tactically selling covered calls on them.

It’s the perfect way to get the benefit of this powerful strategy without having to constantly manage the options yourself.

And what better place to start than with the Kevin’s own flagship fund, the Amplify CWP Enhanced Dividend Income ETF (DIVO). It's a fantastic example of this strategy in action, and its performance over the last decade proves that the concept works.

DIVO is built on the exact principles we've been discussing: it holds a basket of high-quality, dividend-growing stocks and then uses a tactical covered call strategy to boost the income.

Let's break down DIVO a little more to see how it works:

• Top Companies: DIVO's portfolio is a who's who of blue-chip companies you know and use every day. The top 10 holdings (as of August 2025) included big names like Microsoft, Visa, and JPMorgan Chase.

  

• Performance: Since its inception in 2016, DIVO has shown a history of strong performance, providing both a steady stream of income and the potential for capital appreciation. It's a great example of how this strategy can hold up over time and across different market conditions.

  

• Yield: A key feature of DIVO is its attractive 4.65% dividend yield, which is generated from both the dividends of its underlying stocks and the premiums from the covered calls. This monthly income stream is exactly what you need to fuel your own passive income snowball.

  

DIVO is an excellent starting point for anyone who wants to put the "Walk Toward Wealth" strategy into action without becoming a full-time options trader. It allows you to build your wealth with a smart, proven strategy while freeing up your time to do the things you love.

A Sneak Peek at My New Project

Inspired by Kevin Simpson’s strategy, I’m launching a new project to show you exactly how this works in the real world. My Wealth Walk portfolio (a personal app I’m building with AI!) will be built with six carefully chosen dividend funds.

I've picked funds (spoiler: one is DIVO) instead of individual stocks because they offer a lot of benefits. They give you diversification across many companies, they're professionally managed, and they tend to have a more predictable dividend stream. By using funds, we can simplify the process of earning dividends and selling covered calls.

The Wealth Walk web app will track the progress, highlight the top overlapping companies between the 6 funds and provide fun dividend metrics to make the walk more rewarding.

My hope, is that the new portfolio will give you ideas to help you on your journey to financial freedom.

Over the next few weeks, I’ll be sharing more details on why I chose each of the six funds and giving a step-by-step guide on how they use dividend growth plus covered calls to generate extra income. This isn't just theory; it's a real-world example of how to build a passive income stream using this powerful one-two punch.

Want to see how I’ll put this strategy into action? Follow along with me on the Wealth Walk!

Until next time, keep walking

Jeremy ✌️

Disclaimer

This article is for informational and entertainment purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Navigating the path to financial freedom requires a strategic approach to investing, especially when time is of the essence! For those aiming to achieve financial independence within the next 10-15 years, building a portfolio that balances dividend growth and dividend yield is crucial.

Dividend growth ensures your income stream increases over time, keeping pace with inflation, while a solid yield provides immediate cash flow to support your lifestyle or reinvestment goals.

Dividend ETFs (Exchange-Traded Funds) offer a practical solution, combining diversification with targeted strategies to meet these dual objectives.

In this post, we’ll explore why this balance matters and break down five ETFs that can form the backbone of your dividend-focused portfolio. We’ll also demystify covered call ETFs for beginners, as they play a key role in enhancing yield.

Why Dividend Growth and Yield Matter for Financial Freedom

If you’re like me and already hit 40, the window to build wealth narrows, making every investment decision count. This is especially true if you’re newer to the investing game. You need a plan that works smarter (and harder!)

Dividend growth ETFs focus on companies with a history of increasing payouts, which can compound over time and protect your purchasing power. This growth is often the primary focus, as it builds a foundation for a sustainable income stream that can support you in the long run.

However, while growth is critical, a high yield is equally essential for the later stages. When you’re ready to step away from earned income, you’ll need a substantial yield to live off of—a reliable cash flow to cover expenses without dipping into your principal.

In the meantime, those higher dividends act as a powerful boost, especially if reinvested. Think of it as an extra push that sends the snowball of your wealth rolling faster down the hill. Reinvesting these dividends accelerates compounding, helping you build a larger nest egg in a shorter time frame.

Striking this balance between growth and yield through ETFs allows you to prepare for the future while maximizing growth today, reducing the risk of individual company failures and the hassle of stock-picking.

Breaking Down 5 Dividend ETFs: Growth and Yield Strategies

Let’s dive into five ETFs that cater to dividend growth and yield, each with a distinct approach to help you craft a balanced portfolio. I’ve split them into two categories—dividend growth and dividend yield—for clarity.

Dividend Growth ETFs: Building for the Long Term

1. SCHD (Schwab U.S. Dividend Equity ETF)

SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-quality companies with a track record of consistent dividend payments and growth. It prioritizes firms with strong fundamentals, like low debt and high return on equity, making it a cornerstone for long-term income growth. As of recent data, SCHD offers a yield of around 3.5% while maintaining a low expense ratio of 0.06%, ensuring more of your money stays invested.

SCHD’s top 10 holdings

2. DGRO (iShares Core Dividend Growth ETF)

DGRO targets U.S. companies that have increased dividends for at least five consecutive years, emphasizing sustainability. It’s designed for investors seeking steady growth with a yield of approximately 2.3% and an expense ratio of 0.08%. Its broad exposure across sectors helps mitigate risk, making it a reliable choice for those building wealth over the next decade.

DGRO’s top 10 holdings

3. CGDV (Capital Group Dividend Value ETF)

CGDV is a newer, actively managed ETF, that seeks companies with strong dividend growth potential and attractive valuations. It blends growth and value strategies (with a more technology tilt), aiming for both income and capital appreciation. With a lower yield near 1.5% and an impressive 11% dividend growth rate, it offers a more hands-on approach compared to passive index funds, appealing to investors who trust active management to navigate market shifts.

CGDV’s top 10 holdings

Dividend Yield ETFs: Boosting Income with Covered Calls

4. DIVO (Amplify CWP Enhanced Dividend Income ETF)

DIVO is an actively managed ETF that uses a covered call strategy on high-quality, dividend-paying stocks to enhance yield. It aims to provide monthly income with a current yield of around 4.5% and an expense ratio of 0.55%.

By writing covered calls, DIVO generates additional income from option premiums, which can be especially valuable in flat or volatile markets. DIVO only writes calls on a portion of the individual stocks in the portfolio allowing it top capture more capital appreciation compared to some other covered call funds.

DIVO’s top 10 holdings

5. RDVI (FT Cboe Vest Rising Dividend Achievers Target Income ETF)

RDVI combines a focus on companies with rising dividends with a covered call strategy to target higher income. It offers a yield of approximately 8-9% through its options overlay, with an expense ratio of 0.75%. This ETF is ideal for those prioritizing immediate cash flow while still capturing some dividend growth potential.

RDVI is the younger sibling to RDVY, which holds the same underlining stocks but without the cover calls. RDVY has outperformed the S&P 500 in total returns (capital appreciation plus dividends) for the last 1yr, 3yr, 5yr, and 10yr intervals.

RDVI’s top 10 holdings

How Covered Call ETFs Work: A Beginner’s Guide

Covered call ETFs add additional yield based on their options strategy. It might sound complex, but their core concept is straightforward. Here’s a quick breakdown:

• What is a Covered Call? A covered call is an options strategy where the ETF owns shares of a stock and sells (or “writes”) call options on those shares. A call option gives the buyer the right to purchase the stock at a set price (strike price) by a certain date. The buyer pays a premium for the “option.” If the stock price stays below the strike price, the option expires worthless, and the seller keeps the premium paid by the buyer as extra income.

• How It Boosts Yield: The premiums collected from selling these options add to the dividends received from the underlying stocks, increasing the ETF’s overall yield. This can be a powerful way to generate income, especially in markets where stock prices aren’t rising significantly.

• The Trade-Off: The downside is that if the stock price surges above the strike price, the ETF may have to sell the shares at the lower agreed-upon price, missing out on some capital gains. However, for income-focused investors, this trade-off is often worth the consistent cash flow.

• Balancing Yield and Growth: Both DIVO and RDVI focus on dividend-growing companies, ensuring that their underlying portfolios are built on firms with a history of increasing payouts. Additionally, they typically write calls on only a portion of their portfolio, allowing them to balance the enhanced yield from option premiums with capturing the appreciation of the underlying stocks. This strategic approach helps maintain some growth potential while prioritizing income.

• Why It Fits After 40: Covered call ETFs are particularly appealing when you’re closer to retirement, as they prioritize income over aggressive growth, providing a steady stream of payouts to support your financial freedom goals.

Crafting Your Blueprint

Building a dividend portfolio after 40 is about blending the stability of growth with the boost of yield. ETFs like SCHD, DGRO, and CGDV lay the foundation for increasing income over time, while DIVO and RDVI supercharge your current cash flow through covered call strategies.

You can tailor the strategy based on your age to make it work for you!

Start by assessing your timeline and income needs—allocate more to growth if you have 15-30 years, or lean toward yield if you’re targeting freedom in 10 or less.

I hope this give you some fun ideas to look into. In the next post, I’ll be showing how I am using this exact strategy… stay tuned!

Until next time, keep walking.

Jeremy ✌️

Disclaimer

This article is for informational and educational purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

I just wrapped up a sunny week at the beach with my fam 🏖️.

During the trip, I took advantage of the downtime to get my niece and nephew started on their investing journey. This is what I wished someone would have shown me when I was their age.

It’s the simplest way to invest and perfect for beginners and minimalist alike. Actually, as you’ll see here in a few seconds, it’s how 90% of the population should be investing!

Let’s start with some background.

In 2016, J.L. Collins wrote The Simple Path to Wealth: Your Roadmap to Financial Independence and a Rich, Free Life. His mission was to layout an easy-to-follow financial plan for his daughter. The idea resonated with folks across the globe and sold over 1 million copies in 20 languages.

In 2025, he updated the book to include stories from those folks who took his advice to heart.

But guess what? After a decade later, the original investment strategy remains exactly the same... invest in a single fund that follows the US total stock market. AKA — own all the top companies in America!

Today, I’ll tell you why this simple investment strategy works and how easy it is to get started.

How to Beat the Pros

Investing professionals usually have 1 goal: to beat the market. Sadly, only a handful accomplish this feat, which means most people who use financial advisors are paying to underperform!

If you need some proof (like I did!) here's a quick study from the past 15 years.

Check out the full report here 👇
https://www.spglobal.com/spdji/en/research-insights/spiva/

The takeaway is surprising:

89.50% of US funds underperformed the S&P 500

The solution, as J.L. Collins wrote about, is to simply own the market that professionals strive to beat.

Meet VOO!

VOO is Vanguard‘s popular exchange traded fund (ETF) that tracks the S&P 500, which is the largest 500 companies in the US.

👆This ETF represents the “market” that all the pros try to beat.

Think of an ETF like a basket full of individual stocks. They trade on the stock market just like a normal stock, but instead of buying into 1 company you get much more for your buck. Buying 1 share of VOO makes you a co-owner of America’s top 500.

Here’s the 10 largest holdings in VOO:

Enter any big company you can think of, and it’s probably in the S&P 500.

Learn more about VOO on Vanguard’s website.

But wait, there’s more…

Meet VTI!

If 500 isn’t enough for you, you can buy VTI instead, which holds over 3,500 US companies. While the top holdings closely mirror VOO, VTI also includes small and mid-sized companies to provide a well-rounded mix.

VTI is the ETF I hooked my niece and nephew up with this week!

Here’s the 10 largest holdings:

You can learn more about the fund on Vanguard’s website.

Getting Started…

If you’re reading this and haven’t started investing yet, know you are in good company. I was recently talking to a friend who has his PhD and he said he’s never invested on his own because the whole thing scares him too much. I admit it, until you take the first step, it can be intimidating.

I like to compare investing to putting your money into a savings account.

Here’s a screenshot that I showed my niece and nephew to help explain it.

• In scenario 1 (dashed line): you put $500 a month into savings. You’d have $180,000 after 30 years.

• In scenario 2 (solid line): you invested $500 a month and we assume the market will have an average 10% growth (like it has the last 30 years.) You’d have $1,036,312 after 30 years.

In other words, you’d be a millionaire. I mean, that’s pretty awesome, right?

Until next time, keep walking!

Jeremy ✌️

Disclaimer

This article is for informational and educational purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Ever thought your love for real estate, tech gadgets, or even your favorite baseball team could give you an edge in the stock market?

Well… today I am going to try to convince you that your passions are your secret weapon as an investor. By leaning into what excites you, you can dive deeper into understanding the companies you invest in, making smarter decisions that could pay off big.

This idea, championed by the legendary Peter Lynch, is especially powerful in today’s wild 2025 market, where tariffs and economic twists are sending stocks on a rollercoaster ride. With the S&P 500 dipping into correction territory and the NASDAQ dropping over 17% from its peak, now is the perfect time to avoid the noise and focus on what you know and love.

Let’s explore how to harness your passions and become a better investor.

Why Passion Matters in Today’s Crazy Market

In 2025, the market is anything but calm. Tariffs, policy changes, and global uncertainties have stocks swinging wildly. Just look at the numbers: the S&P 500 hit correction territory in March, and the small-cap Russell 2000 has slid into bear market territory with a 20% drop (U.S. Bank Market Correction).

This kind of volatility can be daunting, but it’s also why investing in what you’re passionate about is so crucial right now. When you’re excited about a company, you’re more likely to dig into how it makes money, check its financial health, and keep up with its plans. That knowledge is your shield against market chaos, helping you spot opportunities and avoid pitfalls others might miss.

My Passion-Driven Investments

As someone who geeks out over real estate, technology, and sports, I’ve found that investing in these areas keeps me engaged and informed. Here’s a peek at my favorite picks and why they spark my interest:

• Real Estate (REITs): I’m obsessed with Agree Realty Corporation (ADC). They own retail properties leased to big-name tenants like Walmart, Home Depot, Tractor Supply, and T.J. Maxx. While the rest of the market is all over the place, their stock just hit an all-time high. It’s exciting to see their strategy in action as they pick high-quality tenants to weather retail storms.

• Technology: Google (Alphabet Inc., GOOGL) is my tech crush. From AI to Waymo’s self-driving cars, their innovation keeps me hooked. While their stock price is down with most other tech stocks this year, they consistently report revenue jumps quarter after quarter.

• Sports and Real Estate: As a sports fan, Atlanta Braves Holdings, Inc. (BATRK) could be a home run. They own the Braves baseball team and The Battery Atlanta, a cool mixed-use development around Truist Park. I love cheering for the team and tracking The Battery’s growth. I admit this is a new stock for me so I’ll be slowly building my position as I continue to dig in. A learn-as-I-go approach!

How to Know if You are Really “Invested”

Here’s my little trick to know if I’m truly “invested” - I check how excited I am for a company’s earnings call.

If I’m pumped to hear ADC talk about new properties or Google dish on AI, I know I’m in the right place. But if I’m dreading a call, it’s a sign I might not care enough about that stock and lack the knowledge I need to make a sound investment.

Keeping Your Passions in Check

There is a word of warning when it comes to following your heart…

While Peter Lynch’s philosophy, as outlined in One Up On Wall Street, heavily emphasizes the benefits of investing in companies you know, that’s really only half of the equation. He goes on to say “Know what you own, and know why you own it.”

Loving what you invest in is great, but it can also lead to trouble if you get too attached without understanding the why behind the investment. Investing without the research can quickly turn into emotional investing.

Obviously, emotional investing can cloud your judgment. Take Bed Bath & Beyond for example. My wife and I had our wedding registry there. It seemed like every new retail strip had one right there beside T.J. Maxx, right? But who knew the go-to destination for home goods would hit rough waters and file for bankruptcy.

Even now with BATRK stock, my Braves fandom could make me overlook financial red flags. Research shows that emotional attachment can lead to holding onto losing stocks or making rash trades. It’s like refusing to bench your favorite player even when they’re striking out!

So, How Do You Stay Passionate Without Letting Emotions Take Over?

Here are my go-to tips:

• Mix it Up: Don’t put all your money in one passion. I balance my love for tech with real estate and other sectors to spread the risk.

• Set Rules: Decide what makes a good investment—like steady revenue or a consistently growing dividend.

• Check in Regularly: I review my portfolio every few months to make sure I’m not holding onto stocks just because I love the company.

• Avoid the Noise: Don’t let brand hype speak louder than business fundamentals.

• Get a Second Opinion: If I’m too attached, I ask a friend or read contrarian articles for a reality check. It’s like having a coach to keep you focused.

A Lesson from My Portfolio

This week I made a couple moves in my portfolio because I realized that I didn’t know the why behind a few of companies.

I sold Pfizer (PFE) and LyondellBasell (LYB), both with juicy dividends—around 7.7% for PFE and 9.5% for LYB.

But here’s the thing…

I didn’t really understand their businesses. Pfizer’s drug pipelines and LyondellBasell’s chemical operations felt like a foreign language, and I had zero motivation to dig deeper. When I noticed I had never listened to one of their earnings calls, I knew it was time to let go. Selling those stocks freed up cash to invest in companies I’m genuinely excited about, like ADC and GOOGL.

Ready to Turn Your Passions into Profits?

1. Find Your Spark: What industries or companies get you excited? Maybe it’s fashion, gaming, or renewable energy.

2. Do Your Homework: Research the company’s business model and financials. Passion alone isn’t enough!

3. Start Small: Dip your toes in with a small investment to test the waters.

4. Stay Curious: Keep up with news and earnings calls to stay in the know.

5. Watch Your Heart: Make decisions based on facts, not just feelings.

The Wrap Up

In a market as crazy as 2025’s, leaning into your passions can be your investing superpower. By focusing on what you love—like I do with Agree Realty, Google, and the Braves—you can gain insights that help you navigate volatility.

Just be careful not to fall too hard for your stocks. Diversify, set clear rules, and keep your emotions in check!

So let me ask, what are you passionate about?

Jeremy ✌️

Before you leave…

Disclaimer

This article is for informational and educational purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Day 568 | $57,091

Imagine telling your friends, "You're now talking to a proud owner of the Atlanta Braves!" Well, thanks to my recent purchase of BATRK stock, my childhood dream has become a reality!

While I may not be calling the shots from the owner's box at Truist Park, owning shares in Atlanta Braves Holdings connects me to one of Major League Baseball's most storied franchises and its thriving business operations.

And before you call me crazy, just know that Warren Buffet owns 223,645 shares, which is 0.35% of the Berkshire Hathaway portfolio. If Mr. Buffet can do it, I can too, right?

Let’s dive into the history of this stock, how it makes money, and some risks to consider.

The History of BATRK Stock

Atlanta Braves Holdings (NASDAQ: BATRA, BATRK) became a standalone public company in July 2023, following a split-off from Liberty Media Corporation. This transaction allowed Liberty Media shareholders to receive shares in Atlanta Braves Holdings as part of a tax-free spinoff. The split-off was designed to highlight the value of the Braves franchise and associated assets while providing strategic flexibility for both entities.

The stock is divided into classes (BATRA and BATRK), with BATRK being non-voting Class C shares. Since its debut, BATRK has attracted investors interested in both sports and entertainment assets. I purchased my first shares on March 27, 2025 at around $40.75 per share.

What Does Atlanta Braves Holdings Include?

Atlanta Braves Holdings is much more than just a baseball team.

It includes:

1. The Atlanta Braves Franchise: A perennial contender in Major League Baseball with a loyal fan base.

2. Truist Park: The state-of-the-art stadium where the Braves play their home games.

3. The Battery Atlanta: A mixed-use real estate development adjacent to Truist Park, featuring retail shops, restaurants, entertainment venues, hotels and office spaces. Visit The Battery website

This combination of sports and real estate assets makes Atlanta Braves Holdings unique among publicly traded companies.

How Does Atlanta Braves Holdings Make Money?

Revenue for Atlanta Braves Holdings comes from two primary segments: Baseball Operations and Mixed-Used Real Estate Development.

Baseball Operations

• Event Revenue: Ticket sales, concessions, advertising sponsorships, suites, and premium seating fees.

• Broadcasting Rights: Revenue from national and local television contracts.

• Retail & Licensing: Merchandise sales and licensing agreements.

• Shared MLB Revenue Streams: Includes league-wide broadcasting rights and licensing fees.

In 2024, baseball revenue reached $595 million—a modest 2% increase driven by new sponsorship agreements despite challenges such as declining attendance.

Mixed-Use Real Estate Development

The Battery Atlanta contributes significantly to the company's financial health:

• Rental Income: Leasing space to retail stores, office leases, and restaurants.

• Parking Revenue: Fees from visitors attending events or shopping at The Battery.

The Mixed-use development revenue showed significant growth, rising 14% to $67.3 million in 2024. This increase was driven by higher rental income and parking revenue.

Potential Risks to Consider

While owning shares in Atlanta Braves Holdings is exciting, there are risks investors should keep in mind:

• Economic Sensitivity: It’s probably not a surprise when I say the economy is unpredictable right about now! If the market were to take a downturn, discretionary spending on tickets, merchandise, and retail at The Battery could decline.

• Valuation Concerns: Some analysts believe the stock may be overvalued compared to traditional metrics, but others argue it’s 15% to 20% undervalued. It’s just not easy to value a sports franchise.

• Geographic Concentration: When it comes to investing, I don’t like to put all my eggs in one basket. While investing in BATRK has diverse revenue streams, they all exist in Atlanta’s Battery area.

• Mixed-Use Real Estate Risks: Competition from other developments or reduced foot traffic could impact rental income from The Battery.

Understanding these risks is crucial for making informed investment decisions.

Why Invest in Atlanta Braves Holdings?

Owning shares in BATRK isn’t just about financial returns—it’s about being part of a cultural legacy and a childhood fantasy. The Braves are one of MLB’s most successful franchises with a rich history and passionate fan base. From an investment perspective:

• The company combines stable sports revenue with high-growth real estate assets.

• Some analysts predict significant upside potential for the stock price based on earnings revisions and strategic initiatives.

• Mixed-use development revenue provides diversification beyond baseball operations.

The Wrap Up

Purchasing BATRK stock might not grant you control over player trades or lineup decisions, but it does make you part of an exciting business that blends America’s pastime with innovative real estate development. Whether you're a lifelong Braves fan or an investor seeking unique opportunities, owning a piece of this iconic franchise is definitely worth celebrating.

So next time someone asks about your portfolio, maybe you can join me and say: "I own the Atlanta Braves, yeah, the baseball team!"

Until next time, keep walking!

Jeremy ✌️

Before you leave…

Disclaimer

This article is for informational and educational purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Total Portfolio: $56,027
Day 196 | $22,076 (Fidelity)
Day 563 | $33,960 (Ally)

Have you ever had a craving hit hard—like those golden 12-count nuggets dripping with Chick-fil-A sauce and a side of waffle fries, only to pull up and realize it’s Sunday… and they’re closed?

Or maybe you’ve been where my wife and I were the other day. We put in a pickup order at one of our favorite local spots, mouths watering for a juicy burger and crispy tots. Right as we rolled up to grab it, ping: “Order canceled, sorry!”

The disappointment stings, doesn’t it?

That’s the best way I can describe how I felt on March 12th when I experienced my first dividend cut. After two years on my walk to wealth, I felt that sting when Armada Hoffler Properties (AHH), one of my favorite Real Estate Investment Trusts (REIT), slashed its quarterly dividend by 32%.

But after taking a Sunday off to let it all sink in (see what I did there?), I started to wonder if that sting could signal a chance to regroup and come back even stronger.

Let’s unpack why companies do this, why it might pay off, and what I am doing now with my shares of AHH.

Why Companies Cut Dividends

Think of a company as a kitchen whipping up cash instead of nuggets. Dividends are the plate they serve to shareholders, but when the stove sputters, they might hit the brakes.

Here’s why:

1. Cash Squeeze: If revenue dips—like fewer tenants paying rent at AHH’s properties—there’s less to spread around. They may trim the dividend to keep the lights on.

2. Rising Costs: High interest rates in 2025 mean bigger loan payments. AHH’s got debt to manage, so they might cut to ease the pressure.

3. Safety First: Holding back builds a cushion, avoiding worse moves like selling properties cheaper in unfavorable markets.

4. Future Bets: Cash may be needed to fund growth—like AHH’s new properties, such as Southern Post (a 4.27 acre strip mall transformed into a vibrant hub that blends residential, commercial, and retail spaces).

   

AHH labeled this cut “strategic” (per @DailyREITBeat on X), not a crash.

That’s a reassuring opinion, but still… my annual payout per share fell from $0.82 to $0.56, and the stock took a hit—dropping nearly 14% in the aftermath. When it hit, I wasn’t quite sure what to do next.

Is There a Silver Lining?

Those forbidden Sunday nuggets, I mean… the loss dividends—hurt, but maybe there’s a plan. A cut can pave the way for better days if the company uses it right.

Here’s how it could play out:

1. A Stronger Base: AHH’s keeping $5.8 million yearly from this cut—money to tackle debt or shore up weaknesses, setting up a sturdier future.

2. Lower Stock Price: The 14% drop slashed AHH’s price (from $9.18 in February 2025 to $7.69 on March 21st). If it rebounds, that could be a huge win for my portfolio. Before the pandemic, AHH was trading for over $18 a share.

3. Growth Ahead: That cash could boost AHH’s projects, lifting value over time—like planting seeds for a bigger harvest.

My favorite REIT, Agree Realty (ADC) has walked this path before. In 2011, it cut its dividend 22%—from $0.51 to $0.40 quarterly—during rough waters. It redirected cash to buy prime retail properties (think Walmart leases). By 2024, ADC was paying a monthly dividend and hit $0.25 monthly ($1.00 quarterly), and its stock soared over 300% in a decade. Pain turned to payoff.

So… Where Do We Go from Here?

I think AHH has a winning combo with its vibrant mix of office, shop, and apartment communities. And while the dividend cut stings, it gives them a chance to reset—maybe to wrangle debt or finish projects that could have big payouts on the other side.

After two years of owning the stock, I felt the sting, but that 14% drop? I see a potential deal and today—I grabbed more shares, betting on an ADC-style comeback.

If AHH turns that $5.8 million into momentum, there could be a big payback to patient investors. And while they don’t have that 8%+ yield any more, they are still paying close to 6%!

Of course, there is always a chance they continue to struggle in the current economic conditions. A long term mindset helps ease the risk, but you never really know, do ya?

The Takeaway

Dividend cuts hit like a canceled burger order—frustrating when you’re counting on the payout. But ADC shows a cut can be a detour to something bigger. For AHH, it’s a gamble: Is the sting worth the pain?

Until next time, keep walking!

Jeremy ✌️

And before you leave…

Disclaimer

This article is for informational and educational purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Total Portfolio: $55,520
Day 180 | $21,379 (Fidelity)
Day 546 | $34,139 (Ally)

Hey there, fellow investor!

If you’ve opened your portfolio this year and felt like you’re watching a thriller movie—complete with plot twists and jump scares—you’re not alone (my portfolio is down $1,500 in just 4 days). 2025 has been a bumpy ride so far, with inflation hiccups, geopolitical drama, and markets that swing wildly based on the day’s headlines.

But guess what? Chaos can be your friend if you know where to look. Just like storms reveal which trees have the deepest roots, tough markets highlight the stocks that can weather almost anything. They might not be glamorous, but they’ll save you when things get messy.

Today, I’ll walk you through 10 defensive stocks in my own portfolio that are outperforming the market this year (as of March 5, 2025). We’ll talk about why they’re thriving, how to spot similar opportunities, and most importantly—how you can use this strategy to protect and grow your money, no matter what 2025 throws at us.

Why Defensive Stocks? (Spoiler: They’re Boring… In a Good Way)

What Makes a Stock “Defensive”?

Defensive stocks are companies that sell things people need, not just want. Imagine a zombie apocalypse (stick with me here). You’d prioritize bottled water, canned food, and bandages over designer shoes or a new iPhone, right? Defensive stocks work the same way. They’re in industries like:

• Healthcare (you can’t skip heart medication).

• Utilities (everyone needs electricity).

• Groceries (hunger doesn’t care about inflation).

• Everyday services (like payroll software for businesses).

These companies tend to hold up better when the economy wobbles because their products stay in demand. For example, General Electric (GE)—yes, the lightbulb folks!—is up over 20% this year because they make jet engines. Even in tough times, planes need repairs.

Why 2025 May Be the Perfect Time to Go Defensive

This year’s market has been ever changing:

• Interest rates keep moving.

• Gas prices are all over the place.

• The news cycle feels like a soap opera.

But here’s the silver lining: Uncertainty helps us spot tough stocks. If a company is growing while others struggle, it’s probably built to last. Let’s look at some of my winners so far in 2025.

Top 10 Defensive Stocks in My Portfolio

(Note: All returns are as of March 5, 2025, and compared to the S&P 500’s -2% YTD loss.)

1. General Electric (GE) – Up 21%

What they do: Make jet engines and wind turbines.
Why it’s defensive: Air travel and clean energy aren’t going away and GE’s engines power 1 in 3 commercial flights.
Beginner takeaway: Look for companies that “keep the world running” behind the scenes.

2. Visa (V) – Up 10%

What they do: Process credit/debit card payments.
Why it’s defensive: Even in recessions, people still buy groceries and pay bills. Visa takes a tiny cut of every transaction—and processed $3.2 trillion this quarter.
Beginner takeaway: “Invisible” services (like payment networks) can be goldmines.

3. Automatic Data Processing (ADP) – Up 6%

What they do: Handle payroll for businesses.
Why it’s defensive: Companies have to pay employees, rain or shine. ADP’s software is used by 1 in 6 U.S. workers.
Beginner takeaway: Recurring revenue = reliable growth.

4. Cisco Systems (CSCO) – Up 6%

What they do: Make internet routers and cybersecurity tools.
Why it’s defensive: The internet isn’t optional anymore. Cisco’s tools keep businesses online safely.
Beginner takeaway: Tech can be defensive if it’s essential (like cybersecurity).

5. Schwab International Dividend ETF (SCHY) – Up 7%

What it is: A basket of global dividend-paying stocks (like Nestlé, Unilever).
Why it’s defensive: International diversification + steady dividends..
Beginner takeaway: ETFs let you own 100+ stocks for the price of one.

6. Agree Realty (ADC) – Up 6%

What they do: Owns resilient retail properties like Walmart and Dollar General.
Why it’s defensive: People always shop for basics. ADC gets rent even if sales dip.
Beginner takeaway: Real estate can be low-risk if tenants are recession-proof.

7. Zoetis (ZTS) – Up 2%

What they do: Make medicine for pets and farm animals.
Why it’s defensive: Pet owners prioritize their fur babies’ health over many things!
Beginner takeaway: “Love-driven” spending (pets, kids) is usually a top priority.

8. S&P Global (SPGI) – Up 4%

What they do: Rate companies’ credit (like report cards for debt).
Why it’s defensive: Investors need trustworthy data during chaos.
Beginner takeaway: Companies that “grade” others often thrive in crises.

9. Kroger (KR) – Up 2%

What they do: Run the #2 grocery store in the US behind Walmart.
Why it’s defensive: Everyone eats! Kroger’s loyalty program locks in shoppers.
Beginner takeaway: Boring industries can be beautiful.

10. Alexandria Real Estate (ARE) – Up 3%

What they do: Rent labs to biotech companies.
Why it’s defensive: Cancer research doesn’t stop for recessions.
Beginner takeaway: Niche real estate (labs, hospitals) = hidden gems.

How to Copy This Strategy with No Finance Degree

Step 1: Check Your Portfolio’s “Defense Score”

Look at your stocks and ask:

• Do they sell something people need?

• Have they grown during past recessions?

• Do they pay dividends? (Extra cash = cushion during downturns.)

Step 2: Balance Defense and Offense

Even defensive stocks shouldn’t be your whole portfolio. Aim for:

• “Defense”: Staples, utilities, healthcare.

• “Offense”: Growth stocks (tech).

• Cash on Hand: To buy discounts during market dips.

Step 3: Stay Calm and Keep Investing

Defensive stocks aren’t about getting rich overnight—they’re about sleeping well at night. Set up automatic investments (even $50, $100, or $500 a month!) and let time do the heavy lifting.

Final Thoughts: You’ve Got This!

2025 might feel overwhelming, but remember: Every great investor started where you are now. By focusing on companies that solve real-world problems (like keeping lights on, families fed, or data secure), you’re not just surviving this market—you’re setting yourself up for decades of steady growth.

So grab a coffee, ignore the scary headlines, and take pride in building a portfolio that’s as resilient as you are. 💪

Until next time, keep walking!

Jeremy ✌️

And before you leave…

Disclaimer

This article is for informational and educational purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Total Portfolio: $57,052
Day 176 | $21,915 (Fidelity)
Day 542 | $35,137 (Ally)

Real estate has always been a big part of my life and career journey. While I love the design gig I have now, I took an unusual path to get here.

Back in college, I double-majored in design and real estate, which led me to work as a real estate agent, leasing consultant, and title underwriter early in my career. My love for properties began in college when I helped my parents renovate houses – an experience that inspired me to buy my own fixer-uppers. So far, I've lived in and renovated 8 homes, learning valuable lessons with each project.

Despite this hands-on background, my preferred way to invest in real estate today isn't through physical properties but through REITs (Real Estate Investment Trusts). They give me the benefits of owning real estate without many of the headaches that come with being a landlord.

My Journey from Renovation to REIT Investing

Working on home renovations taught me firsthand about the work, costs, and challenges of real estate. Each project came with lessons about unexpected expenses, dealing with contractors, and navigating building codes. While rewarding, these experiences showed me how much time and stress goes into managing physical properties.

This led me to look for easier ways to invest in real estate, which is how I discovered REITs. These are companies that own, operate, or finance income-producing real estate across different sectors. They let you earn income from real estate without having to buy, manage, or finance properties yourself. When they're publicly traded, you can buy and sell shares just like stocks, making them much easier to get in and out of than physical properties.

REITs were created by Congress in 1960 to give everyday investors access to real estate investments. One thing that makes them special is they must pay out at least 90% of their taxable income as dividends to shareholders each year. This creates a great way to earn passive income while still being invested in real estate.

My First REIT Investment: ADC (Agree Realty Corporation)

I first dipped my toes into REIT investing with Agree Realty Corporation (NYSE: ADC). This company focuses on retail properties that are net leased to major retail tenants. Their portfolio includes over 2,000 properties across 49 states, with tenants like Walmart, Tractor Supply, Best Buy, and Dollar General.

What attracted me to ADC was their "net lease" model. This means tenants pay for most property expenses like taxes, insurance, and maintenance. It creates steady, predictable income with minimal management hassles – exactly what I wanted in a passive investment.

Since investing in ADC in September 2023, it's grown to about 5.5% of my investment portfolio. I've enjoyed impressive returns with about 27.6% growth in share value. Even better is the 5.26% yield on cost, giving me steady passive income that grows as I reinvest dividends.

The Challenges of Physical Real Estate Investing

Tenant Troubles and Management Headaches

Being a landlord can be incredibly stressful. I saw this with my parents' rental properties. Even with careful background checks, they still ran into problem tenants. I remember countless late-night emergency calls about plumbing disasters – one tenant seemed to have a special talent for clogging toilets at midnight! Even worse was their experience with a tenant who simply stopped paying rent, leading to a long eviction process. All while the mortgage, taxes, and insurance payments kept coming due, creating serious financial strain.

Capital and Financial Risk

Physical properties tie up a lot of money in one place. The down payment and closing costs for an investment property can lock up hundreds of thousands of dollars in a single asset, in one location. This makes you vulnerable to local market downturns, natural disasters, or neighborhood problems.

The Illiquidity Challenge

Physical real estate is hard to sell quickly. Unlike stocks or REITs that you can sell in minutes during market hours, selling a property takes months and comes with hefty costs like real estate commissions and legal fees. This becomes a real problem if you face a financial emergency or if the market suddenly drops.

Time-Intensive Management Requirements

Managing rental property either takes your time or your money. If you self-manage (like my parents did), you're handling tenant screening, rent collection, maintenance, and legal compliance – basically taking on a part-time job. If you hire a property manager, you'll typically pay 8-12% of your rental income, cutting into your returns. Either way, it's not truly passive.

The Advantages of REIT Investing

True Passive Income Without Management Burdens

REITs offer a simpler alternative that addresses many of these challenges while still giving you exposure to real estate. The biggest advantage is truly passive income without property management headaches. As a REIT shareholder, you get dividends without dealing with tenant issues, maintenance problems, or vacancies. Professional teams handle all the day-to-day operations.

Built-In Diversification Across Properties and Markets

REITs instantly diversify your real estate investments across multiple properties, locations, and sometimes different property types. This reduces the risk that comes with owning just one or two properties. My own REIT portfolio shows this benefit – it includes retail, life sciences, mixed-use developments, single-family rentals, and global industrial properties.

Superior Liquidity and Financial Flexibility

Publicly traded REITs offer great liquidity. You can buy or sell shares any time during market hours, with minimal transaction costs compared to physical real estate. This flexibility gives peace of mind, knowing you can access your money quickly if needed.

Lower Barriers to Entry

REITs are more accessible than direct property ownership. You can start investing with modest amounts rather than saving for years to build up a down payment. This makes real estate investing available to more people, regardless of their net worth or ability to get mortgage financing.

Exploring My REIT Portfolio Diversity

One thing I love about REIT investing is being able to target specific types of real estate that interest me. My current portfolio shows how diverse the REIT sector really is.

Agree Realty Corporation (ADC) is the foundation of my REIT investments with its focus on retail properties. They specialize in properties leased to essential retailers with strong credit ratings, which provides stability even during economic downturns. Their triple-net lease structure, where tenants handle property expenses, creates reliable income streams with minimal management needs.

Alexandria Real Estate Equities (ARE) gives me exposure to the growing life science real estate sector. They develop and operate research campuses “Mega Campus” in innovation hubs like Boston, San Francisco, and Research Triangle. Their buildings house pharmaceutical, biotech, and tech companies doing cutting-edge research. This focus positions ARE to benefit from the expanding healthcare and biotech sectors.

Armada Hoffler Properties (AHH) offers a unique "work, live, play" approach. They develop and manage mixed-use properties that combine apartments, retail, and offices in vibrant urban centers, mainly in the Mid-Atlantic and Southeast. This creates communities where people can live, work, and access services all within walking distance. It's a modern approach that appeals to today's lifestyle preferences.

American Homes 4 Rent (AMH) focuses on single-family rental homes, a sector that's grown tremendously in recent years. They buy, renovate, and manage single-family homes in desirable suburban neighborhoods. Recently, they've started building entire rental communities designed specifically for renters. This meets the growing demand from people who want single-family living without the commitment of homeownership.

W.P. Carey Inc. (WPC) rounds out my portfolio with global diversification. Operating since 1973, they own industrial, warehouse, office, retail, and self-storage properties across North America and Europe. This international exposure helps protect against regional economic issues. They're known for "sale-leaseback" deals, where they buy properties from companies and lease them back, creating win-win arrangements.

Together, these five REITs give me exposure to many different property types, locations, and economic trends. This diversification helps protect my portfolio from problems in any one sector while positioning it to benefit from growth in multiple areas of real estate.

Building Wealth That Lasts

REITs offer a surprisingly simple path to long-term wealth that can benefit both you and future generations. They provide the perfect mix of steady income and growth potential without property management hassles. The automatic compounding of dividends acts like a wealth snowball, growing bigger over time – even when you're not actively managing it.

The best part? You don't need to be a real estate expert or have a large starting balance. With REITs, anyone can start building real estate wealth through their brokerage account – it's truly a "set it and forget it" approach to becoming a landlord. REITs let you harness the power of real estate while skipping the midnight plumbing emergencies!

Until next time, keep walking!

Jeremy ✌️

And before you leave…

Disclaimer

This article is for informational and educational purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Total Portfolio: $56,727
Day 173 | $21,869 (Fidelity)
Day 539 | $34,670 (Ally)

Today, I’m excited to share my latest addition to the Walk to Wealth portfolio: the Schwab International Dividend Equity ETF (SCHY). If you’ve been following my journey, you’ll recall last week’s deep dive into SCHD, Schwab’s flagship U.S. dividend ETF.

Now, let’s cross borders and explore SCHY—a fund designed to bring global dividend stability to your portfolio while mirroring SCHD’s disciplined strategy with an international twist.

Whether you’re new to investing or looking to broaden your horizons, this post will unpack why SCHY deserves a spot in your portfolio and how it complements its big sis.

Why International Exposure Matters for Dividend Investors

The idea of investing internationally might feel daunting. I know it does for me at least! However, diversification can reduce risk and unlock opportunities in markets that operate on different economic cycles. While U.S. stocks have outperformed in recent years, international markets often offer higher dividend yields and exposure to industries underrepresented in the U.S., such as global healthcare giants or European energy leaders.

SCHY provides access to 25 countries, with the United Kingdom (14.65%), Australia (12.11%), and France (11.94%) leading the allocation. This spread ensures that your dividends aren’t tied to a single economy. For instance, during periods when the U.S. market stagnates, robust performances from sectors like European utilities or Asian telecommunications could stabilize your returns.

But… the real reason, is the dividends!

SCHY vs. SCHD: A Strategic Pairing

SCHY and SCHD share DNA: both track dividend longevity, financial health, and profitability. SCHD’s U.S. focused portfolio has delivered consistent dividends, but SCHY broadens the horizon by targeting international companies with similar makeup. Here’s how they stack up:

Key Similarities

• Dividend Quality Screens: Both ETFs require a 10-year dividend history and evaluate metrics like cash flow-to-debt ratios to ensure sustainability.

• Dividend Growth Focus: They prioritize companies with a track record of increasing payouts over time, not just high current yields. For example, SCHD’s holdings have grown dividends by 11% annually over the past decade, while SCHY’s younger portfolio has already delivered 9%+ yearly growth since its 2021 launch. (And has an impressive 35% 3-year growth rate!)

• Low Costs: SCHY’s expense ratio (0.14%) is slightly higher than SCHD’s (0.06%), but both remain very cost-effective compared to active funds.

Strategic Differences

• Global Reach: SCHY’s top holdings include Swiss pharmaceutical titan Roche Holding (4.50%), French energy leader TotalEnergies (4.27%), and British consumer goods giant Unilever (3.67%). These companies offer exposure to sectors less prominent in SCHD, such as European healthcare and utilities.

• Yield vs. Growth Balance: SCHY’s 4.36% forward yield outpaces SCHD’s 3.76%, but SCHD’s longer dividend growth history more than makes up for the difference.

• Risk Management: SCHY adds a volatility screen to its selection process, favoring stocks with lower price swings—a nod to the inherent risks of international markets.

A Closer Look at SCHY’s Top Holdings

SCHY’s portfolio of 100ish stocks is a curated mix of global dividend aristocrats. Let’s look at a few of it’s top holdings:

1. Roche Holding AG (4.50%): This Swiss healthcare leader dominates oncology and diagnostics, with a dividend streak spanning decades. Its steady cash flows make it a defensive anchor during market downturns.

2. Vinci SA (4.30%): France’s largest construction and concessions company benefits from infrastructure spending across Europe. Vinci’s toll roads and airports generate reliable, long-term income.

3. TotalEnergies SE (4.27%): A French energy major transitioning toward renewables, TotalEnergies balances fossil fuel dividends with investments in sustainable projects—a play on both income and future growth.

4. Unilever PLC (3.67%): This British-Dutch conglomerate owns iconic brands like Dove and Ben & Jerry’s. Its global consumer base provides stable dividends, even during economic slowdowns.

5. Novartis AG (3.52%): A Swiss pharmaceutical giant with treatments ranging from heart disease to cancer. Its 26-year dividend growth streak showcases its commitment to shareholders.

6. BHP Group Ltd (3.83%): Australia’s mining powerhouse profits from global demand for copper and iron ore, linking your portfolio to cyclical economic rebounds.

These companies exemplify SCHY’s focus on durable cash flows and global leadership.

Why SCHY May Fit in Your Portfolio

For those starting their investment journey or looking to broaden their horizons, SCHY simplifies international exposure. Here’s why it’s beginner-friendly:

1. Instant Diversification: One purchase grants ownership in 134 companies across developed markets, eliminating the need to research individual foreign stocks.

2. Dividend Growth on Autopilot: Both SCHY and SCHD automatically prioritize companies that raise payouts, meaning your income grows without requiring constant monitoring.

3. Lower Volatility: The fund’s screens for stable stocks help cushion against the sharper swings often seen in emerging markets.

The Wrap Up: Building a Global Dividend Foundation

Just as SCHD anchors my U.S. equity exposure with its proven dividend growth, SCHY opens doors to international markets where younger dividend growers thrive. Together, they ensure my income streams aren’t bound by a single economy or growth phase.

For me, this pairing offers a “best of both worlds” (Get it?) approach: SCHD’s reliability and SCHY’s global potential. Over time, their combined dividend growth can turn modest investments into powerful income engines.

Happy investing, and here’s to walking toward wealth—one global step at a time!

Until next time, keep walking!

Jeremy ✌️

And before you leave…

Disclaimer

This article is for informational and educational purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.

Total Portfolio: $56,539
Day 172 | $21,869 (Fidelity)
Day 537 | $34,670 (Ally)

Let me tell you about my two portfolio anchors – not stocks, not crypto, but two humble Exchange Traded Funds (ETFs) that have become the bedrock of my financial independence plan.

One’s a steady, rules-based workhorse that chugs along like a dividend-paying locomotive. The other’s a nimble, expert-driven opportunist that hunts for value like a Wall Street bloodhound.

Let me show you why this combo has become the backbone of my portfolio – and why you might want to steal the blueprint.

Understanding Passive vs Active ETFs

Passive ETFs track established indexes with minimal management intervention, typically offering lower fees and consistent market returns. I love passive funds because they simply follow a strategy and no one can mess it up!

Active ETFs, on the other hand, are managed by investment professionals who make strategic decisions to potentially outperform the market. With active funds, I'm essentially letting the experts (aka smarter people than me!) do their thing.

Warren Gibbon from Boston Family Advisors wisely notes that investors shouldn't think about investments as "active or passive, but active and passive."

My Passive Anchor: SCHD (Schwab US Dividend Equity ETF)

SCHD has become a favorite among dividend investors for good reason. This passive ETF tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-quality dividend-paying companies. I currently hold 116 shares of SCHD, which forms a solid foundation in my portfolio.

Performance Highlights:

• Current dividend yield: 3.53%

• Impressive dividend growth: 12.21% (1-year)

• Quarterly dividend payments

The fund has delivered strong long-term dividend growth with a 10-year Dividend CAGR (Compound Annual Growth Rate) of 11.18%. Which is quite impressive!

My Active Anchor: CGDV (Capital Group Dividend Value ETF)

CGDV is a newer active ETF launched in 2022 that focuses on dividend-paying stocks of established U.S. companies. I've accumulated 111 shares of CGDV, balancing out my passive holdings with this actively managed fund.

Performance Highlights:

• Current dividend yield: 2.02%

• Strong 1-year return: 23.4%

• Quarterly dividend payments

Dividend History:
Despite being newer to the market, CGDV has shown promising dividend growth:

• 2024 total payout: $0.5637 (14.29% growth from previous year)

• 2023 total payout: $0.4932 (54.17% growth from 2022)

• 2022 total payout: $0.3199

Comparing Top Holdings

The composition of these ETFs reveals their different approaches:

SCHD Top Holdings (as of September 2024):

1. Home Depot (HD): 4.33%

2. Verizon Communications (VZ): 4.27%

3. Cisco Systems (CSCO): 4.21%

4. BlackRock (BLK): 4.20%

5. Pfizer (PFE): 4.05%

CGDV Top Holdings (as of February 2025):

1. Meta Platforms (META): 6.13%

2. Microsoft (MSFT): 4.62%

3. RTX Corporation (RTX): 4.48%

4. Philip Morris (PM): 4.15%

5. American International Group (AIG): 3.83%

The difference is striking - SCHD focuses on traditional dividend stalwarts, while CGDV includes growth-oriented companies like Meta and Microsoft alongside strong dividend payers.

Why This Pairing Could Transform Your Investment Approach

This SCHD/CGDV combination addresses core investor needs through strategic balance. Let's examine how these ETFs may fit into your portfolio:

1. Predictable Foundation
SCHD's rules-based methodology (3.53% yield, 11.18% 10-year dividend CAGR) provides essential stability. Its mechanical rebalancing eliminates emotional decisions - particularly valuable during market turbulence.

2. Growth Potential
CGDV's active management capitalizes on opportunities passive strategies might miss, evidenced by its 23.4% 1-year return. Professional stock selection gives exposure to evolving sectors while maintaining dividend discipline.

3. Compounding Advantage
SCHD's consistent dividend growth builds wealth through reinvestment, while CGDV's tech holdings (6.13% Meta allocation) offer appreciation potential. Together they create dual compounding engines.

4. Strategic Flexibility
Conservative investors might weight SCHD heavier, while growth-seekers could increase CGDV exposure.

This isn't about choosing between philosophies, but harnessing their combined strengths. SCHD's automation protects against human error, while CGDV's active management leverages human expertise. The result? A portfolio that's:

• Resilient in downturns (SCHD's defensive sectors)

• Opportunistic in recoveries (CGDV's growth tilt)

• Continuously income-generating (both funds' dividends and dividend growth)

For investors seeking to mitigate volatility without sacrificing growth potential, this dual-anchor approach could offer compelling advantages.

Of course, I don’t know your exact goals, but wanted to take a minute to share two of my favorite dividend funds, and why they are such a big part of my walk to wealth.

Until next time, keep walking!

Jeremy ✌️

And before you leave…

Disclaimer

This article is for informational and educational purposes only. I am not a financial advisor, broker, or tax professional. The information provided reflects my personal opinions and experiences as an individual investor and may not be accurate or current. All investment strategies and investments involve risk of loss. Any ideas presented may not be suitable for all investors and may not take into account your specific investment objectives, financial situation, or needs. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified financial professionals before making any investment decisions.