INSIGHTS TO BUILD YOUR DIVIDEND INCOME
While we touched upon Regulated Investment Companies and Qualified vs Unqualified dividends in a previous article, we thought it would be beneficial to dive deeper… When it comes to maximizing the income from your investments, understanding the nuances of…
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At Fly High Investing, we focus on a comprehensive view of earnings ratios to evaluate the sustainability and potential of dividend-paying stocks. You might be interested to find that we also use the price-to-earnings (P/E) ratio as a metric to…
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High Dividend Yield Stocks and Growth Stocks that pay dividends represent two different investment strategies, and each has its own set of characteristics and considerations. Let’s explore the key differences between these two types of stocks: Dividend Yield stocks:…
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We covered Regulated Investment Companies (RICs) in a previous post and providing here a deeper dive into unlocking wealth in your 401k via RICs such as REITs and BDCs. If you are seeking a robust and reliable income stream for…
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Before we begin, please note that this is a high-level overview of a complex topic. It warrants further discussion as it impacts the earnings report of a stock in the Fly High Investing Portfolio, which subsequently affects dividends. Therefore, we…
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Should you be using AI insights for dividend income investing advice? We feel at Fly High Investing that Generative AI like ChatGPT or Anthropic’s Claude (among many) can offer some useful information to help with decision making, but the…
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Dividend stocks have a unique resilience during market crashes, often providing a buffer against extreme volatility. This resilience stems from their underlying business models, which typically involve stable, mature companies with consistent cash flows. During a market downturn, the reliable…
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When a company announces a public offering of common stock such as RITHM Capital has this week, it typically results in a temporary dip in its stock price for several reasons. First, the increase in the number of available shares…
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It isn’t as easy as it sounds. If you are not familiar how it works, you buy a stock right before the ex-dividend date to capture the dividend, then sell it right after. Sounds like a quick win, right? But…
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When it comes to dividend investing, the debate today is usually between Dividend Growth and High Yield strategies which often sparks discussion among seasoned investors. Dividend Growth focuses on companies that gradually increase their payouts over time, but these increases…
Read MoreCompound Dividend Calculator
The Fly High Investing portfolio is designed to rapidly grow your passive income by harnessing the power of compounding ultra-high-yield dividends. We ensure that dividends are backed by distributable earnings, providing a sustainable and dynamic income stream. Over the past six years, the portfolio has had an average annual dividend yield of approximately 10.7%. If you had invested in the Fly High Investing portfolio six years ago, the yield on your original investment would now exceed 18.8%.
Below is a calculator to see potential dividend income stream. Over the last two-plus years the dividend yield has been well above 12%, so consider using 12% as the annual dividend rate when charting your course.
How to use the Calculator
Initial Investment: This is the initial investment you start with for a certain asset or pool of assets e.g. the 50 stocks in the Fly High Portfolio.
Annual Addition: This is the total annual contribution you make in addition to your initial investment (what you put in outside of any dividend reinvestments)
Number of Years: The number of years you wish to calculate out. NOTE: We will be using DRIP to calculate reinvesting the dividend income back into the overall investment each year (no withdrawals at this point)
Annual Dividend rate: This could be conservative such as just a few % like a high yield savings account would provide ...or use a more aggressive percent such as the 12.64% the current yield that the Fly High Portfolio is producing.
Compounding Frequency per Year: We recommend 4, this would calculate quarterly dividend interest on average.
Compound Dividend Calculator
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Good morning,
I’ve been an investor with flyinghigh since mid May. I’ve been looking to do dividend reinvesting for many years to earn passive income. I met Mike through a dear friend of mine of 30+ years. After speaking with Mike I was all in. Since then my investments with my company force me to keep a minimum of 5% in investments and the rest of the money I invested in my brokerage account. The past few months on the investment side has really been preforming at all time highs. I’ve continue to pull the excess amount of money over the 5% on my investment side and continue to fund my brokerage account. The reason I do this is because you never know when the market is going to tank. Then I level my brokerage stocks to a close even ownership dollar amount with each. My left over monies I keep as a slush fund until I receive my monthly dividends once again. My income from dividend reinvestments continue to rise and grow nicely. I’m 2-3 years from retirement and only wish I knew about this years ago.
Thank you, Mike for passing along your knowledge to all of us here invested in the program.
Thank you for your post, Charlie. Your insights on managing your portfolio offer valuable considerations, which align perfectly with the forum’s purpose. Many of us share the sentiment that we wish we had known these strategies earlier, especially considering the crucial role time plays in compounding. But as they say, it’s better to start late than never at all.
Hi Mike, how often should dividends be reinvested? As often as one wants or until a desired accumulated dollar amount is reached? Thanks.
Hi Juan. That question gets asked a lot, so thanks for bringing it up on the forum. How often you reinvest your dividends can depend on your investment strategy and financial goals. Here are a few considerations to help you decide:
Frequency of Dividend Payouts: Some investments pay dividends quarterly, while others pay annually or even monthly. Reinvesting dividends as they are paid out can ensure that your money continues to work for you without sitting idle.
Cost Efficiency: Consider the costs associated with reinvesting dividends. Some brokerage accounts may charge fees for dividend reinvestment, so it might be more cost-effective to reinvest less frequently or in larger amounts to minimize these fees.
Compound Interest: Reinvesting dividends allows you to benefit from compounding returns, where your earnings generate earnings over time. The sooner dividends are reinvested, the more time they have to compound and potentially grow your investment.
Personal Preference: Some investors prefer to reinvest dividends immediately to maximize growth, while others may prefer to accumulate dividends in cash and reinvest larger sums periodically.
Investment Goals: Your specific financial goals and investment strategy will also influence how often you reinvest dividends. For long-term goals, frequent reinvestment may be beneficial to capitalize on compounding. For shorter-term goals, you might reinvest dividends less frequently or use them as income.
In summary, the frequency of reinvesting dividends should align with your overall investment strategy, cost considerations, and financial objectives. It’s often a balance between maximizing growth through compounding and managing costs effectively. And one more point I would like to make. Reinvesting your dividends should be fun, not a chore, so you should manage your portfolio, don’t let the portfolio manage you. Hope this helps.
My new motto,
Knowledge is power, and so is the compounding of dividends.
Thanks Mike
Thanks for your post, Charlie, and I agree with you. That’s a fantastic blend of wisdom and financial savvy. It’s like combining the best of both worlds for personal growth and harnessing the incredible power of compounding dividends to generate a tsunami of passive income!
I learned about Fly High Investing about 3 years ago. Of course when I heard the word “ Stocks” I was equally terrified and curious. I had nothing but horrible luck in my individual stock purchases and got discouraged with the whole investment idea. Then came Dividends and Fly High. It was just what I was looking for. Good returns, passive income and low risk while keeping my portfolio liquid! Still not knowing much about it I decided that if I was going to do this I was going in BIG. 3 years later I could not be happier! It’s continued to deliver every month and now as I get close to retirement I have peace of mind that I will be able to live a comfortable life! Thank you Mike for giving me this terrific opportunity!
Thanks for your post, Bill. That’s incredible to hear! It sounds like Fly High Investing has been a game-changer for you. Finding something that aligns with your financial goals and provides peace of mind for retirement is no small feat. It’s inspiring to hear how dividends and a low-risk approach have not only turned things around but have also set you up for a comfortable future. Fly High must be doing something right! Here’s to continued success and a worry-free retirement ahead!
Mike, we are enjoying the investment opportunities that you’ve blessed us with. Not being very well versed in the stock market game, this has been the easiest & most satisfying way for us to increase income without being masters in it. Keep up the great work! More referrals to come.
Thanks for your post, Paul. At Fly High Investing, we pride ourselves on a few key differentiators that set us apart from other newsletters and stock investing websites. First and foremost, our portfolio is meticulously curated to focus exclusively on high-yield dividend stocks with earnings to support the dividends. Because only the top 50 stocks out of over 10,000 stocks available on the various exchanges get admitted to the portfolio, we are able to offer a significantly higher yield than any other investment option out there.
Additionally, our process is transparent and designed to be user-friendly. We provide detailed company profiles and regular updates on performance, making it easier for you to make informed decisions. For a deeper dive into what makes us unique, you can check out our “Advantages” page and learn more about our process. We also keep things light and engaging because, let’s face it, investing should be fun too!
I am a new user/subscriber. Today, I logged into Fidelity and had my best day of dividends come through. I can’t thank you enough Mike for the help setting all of this up on my Fidelity account. You have made it easy to navigate. I’m still learning and seeing great results.
Thanks for your post, Kathy. As you’re beginning to realize, your income will continue to increase, irrespective of what the stock market is doing, because of the power of compounding dividends. As we say on the website your “payouts act as a shield against market volatility and inflation, providing peace of mind even when the market gets jittery. Plus, reinvesting your dividends fuels compounding growth, turning your initial investment into a powerful engine of passive income.”
Hello everyone, I’m Mike, the founder of FlyHighInvesting.com, which launched five years ago in June 2019. It’s my pleasure to initiate the conversation on our new community forum, which just went live this week. Our goal with this forum is to cultivate a space where members can connect, share insights, and support each other.
Here, you’ll find opportunities to ask questions, receive guidance from moderators and experienced members, and engage in meaningful discussions. We’re excited to welcome you to our community forum. Whether you’re here to share your expertise, seek advice, or simply connect with others who share your interests, you’ve come to the right place.
Feel free to introduce yourself and start exploring the diverse range of topics available. We’re eager to witness the valuable contributions you’ll bring and to build this forum into a lively hub of knowledge and interaction. Once again, a warm welcome to each of you.
I carved out a pool of funds dedicated to Fly High portfolio months ago, initially had average results (only invested in a handful and I didn’t spread risk). Six months ago, I spread that investment equally among all 50 and the results are excellent, this pool is outperforming the rest and it’s super simple to balance, just check your weekly updates!
Thanks, Erik. You’ve made a wise decision by diversifying your investment across all 50 stocks, ensuring each represents only 2% of your balanced portfolio. While I’m uncertain about what you mean by ‘outperforming,’ I can assure you that reinvesting your dividends will steadily increase your income stream. The compounding effect of dividends is unmatched in the investing world. In my view, striving to build a passive income stream that secures lifelong financial freedom should be the ultimate investment objective for everyone.