This yr, I’m on monitor to hit $2,000 per yr in passive dividend and curiosity earnings. Since I began masking my journey to $2,000 per yr in dividend earnings, I’ve managed to extend my dividend and curiosity earnings by over $500. The way in which this labored was, I began out the yr incomes $1,200 per yr in dividend earnings, then I purchased some new investments and had a couple of of my shares improve their dividends. Consequently, I obtained as much as $1,750 per yr in passive funding earnings. On this article, I’ll discover how I did it, and the way I plan to get to the subsequent degree.

How I obtained to $1,750/yr so rapidly

One of many largest methods I elevated my passive earnings this yr was by shopping for excessive yielding assured funding certificates (GICs). I noticed that 5% yields have been accessible on GICs, so I put $5,000 of my financial savings into them. That’s $250 in passive earnings proper there.

One other manner I quickly scaled up my passive dividend earnings was by shopping for financial institution shares just like the Toronto-Dominion Financial institution (TSX:TD). For probably the most half, I purchased nearly all of my banking shares final yr, though I did add to my Financial institution of America place this yr throughout the March banking panic. That enabled me to considerably improve my base of dividend-paying shares. On high of that, I amassed some dividend-paying tech shares like Taiwan Semiconductor Manufacturing, and the financial institution shares I simply talked about elevated their dividends.

I loved a large improve in my projected dividend earnings from TD Financial institution alone. At the beginning of the fiscal yr, TD hiked its dividend by 8%. From that one dividend hike alone, I obtained a few $40 improve in my dividends – and different shares in my portfolio hiked their dividends as nicely.

How I plan to hit the $2,000 milestone

Having proven how I obtained to $1,750 in 2023 projected dividends, it’s now time to disclose how I plan to get the additional $250, and hit my $2,000/yr aim.

Reality be informed, I’ll in all probability do it largely with GICs. GIC yields are fairly excessive proper now. Only some months in the past, you could possibly get 5% on a one-year GIC. At the moment, you will get round 4.8%. That’s a significantly better yield than you’ll get on most shares. I’ve been placing some huge cash into GICs this yr as a result of the yields are so excessive now, you nearly can’t afford not to personal them. I’ve been making some small purchases of dividend shares right here and there, too, however I’m actually centered on GICs above all else this yr. I’ll in all probability make investments about 60% of what I save this yr into them.

Silly takeaway

As I confirmed on this article, it’s fairly attainable for a diligent saver to get to $2,000 per yr in passive dividend earnings. I’m many of the manner there already, and I’ve solely been saving for about four-and-a-half years. It’s undoubtedly do-able. One other $5,000 into 5% yielding GICs would take me to $2,000 in projected dividend earnings. My dividend shares climbing their payouts doesn’t harm both.