Investing has always been a topic of intrigue for me, but it wasn’t until recently that I decided to take the plunge. Over the past year, I’ve embarked on a journey into the world of dividend stocks, and it’s been an enlightening experience filled with valuable lessons and promising returns.
Why I Started Investing
Inspired by My Dad’s Success
My primary motivation came from observing my dad’s success with investing. He often shared stories about how his investments provided financial security and opened doors to opportunities that would have otherwise been out of reach. Seeing firsthand how investing positively impacted his life inspired me to follow in his footsteps.
Low Returns on Savings Accounts
Another significant factor was the dismal returns from my traditional savings account. With interest rates at an all-time low, my savings were barely growing. I realized that if I wanted to achieve my financial goals, I needed to explore alternative avenues that offered better returns.
Starting with Dutch Stocks
March 2021: My First Investment in KPN
I decided to begin my investment journey with companies I was familiar with, leading me to Dutch stocks. In March 2021, I made my very first investment:
29.03 – KPN
- Bought: 172 shares at €2.92 each
- Total Investment: €502.24
KPN, a leading telecommunications company in the Netherlands, seemed like a stable starting point.
October 2021: Diversifying My Portfolio
By October, I felt more confident and decided to diversify my portfolio:
04.10 – Expanding My Investments
- Randstad
- Bought: 19 shares at €62.24 each
- Total Investment: €1,182.56
- PostNL
- Bought: 244 shares at €4.47 each
- Total Investment: €1,090.68
- ING Groep
- Bought: 100 shares at €11.68 each
- Total Investment: €1,168.00
- Bought: An additional 328 shares at €2.73 each
- Total Investment: €895.44
10.10 – Adding Ahold Delhaize
- Bought: 70 shares at €28.30 each
- Total Investment: €1,981.00
This diversification aimed to spread risk and tap into various sectors of the Dutch economy.
Tracking My Dividends
April 2021: First Dividend from KPN
Just a month after my initial investment, I received my first dividend payout:
21.04 – KPN Dividend
- Received: €0.087 per share
- Total Dividends: €14.96 (for 172 shares)
This was a modest but encouraging start, reinforcing the benefits of dividend investing.
August 2021: Second Dividend from KPN
A few months later, I received another dividend from KPN:
04.08 – KPN Dividend
- Received: €0.045 per share
- Total Dividends: €7.74 (for 172 shares)
Consistent dividends like these contribute to a steady stream of passive income.
Total Value and Dividends Received
Total Investments
Over the year, my total investments amounted to:
- Total Invested: €6,819.92
Total Dividends Received
From my investments, I received:
- April Dividends: €14.96
- August Dividends: €7.74
- Total Dividends: €22.70
While the dividends might seem modest initially, reinvesting them can significantly boost returns over time due to the power of compounding.
Lessons Learned and Future Plans
The Power of Patience
Investing is not a get-rich-quick scheme. It requires patience and a long-term perspective. Watching my investments fluctuate taught me the importance of staying the course and not making impulsive decisions based on short-term market movements.
The Importance of Diversification
Diversifying my portfolio helped mitigate risks. By investing in different sectors and companies, I was not overly exposed to the volatility of a single stock or industry.
Reinvesting Dividends
Reinvesting dividends can accelerate portfolio growth. I plan to continue reinvesting my dividends to take advantage of compound interest.
Continuing Education
The world of investing is vast and ever-changing. I intend to keep learning, staying updated with market trends, and possibly exploring international markets in the future.
Conclusion
Embarking on my investment journey has been one of the most rewarding decisions I’ve made. Not only have I started building a portfolio that generates passive income, but I’ve also gained invaluable knowledge about finance and the economy. I look forward to what the future holds and am excited to continue growing my investments.
