Wednesday, May 21, 2025

Building Passive Income: New Dividend Stock Additions & Sell

 

In my ongoing journey toward building a sustainable stream of passive income through dividend stocks , I’ve recently made some strategic additions to my portfolio. These moves not only diversify my holdings but also significantly boost my expected yearly dividend income .

Here’s a breakdown of what I bought, why I chose these companies, and how much in additional dividends I’m now expecting to receive annually.


🛒 Recent Trades Summary (May 2025)

1. Woodside Energy Group (WDS) – Sold

  • Trade Date : May 7, 2025
  • Action : Sell
  • Quantity : 25 shares
  • Price per Share : $12.94
  • Total Proceeds : $323.49
  • Dividend Adjustment : $0.01
  • Reason for Sale : Reallocate capital to higher-yielding or more stable dividend stocks

Selling my position in Woodside Energy Group (WDS) allowed me to reallocate capital into more stable, high-yield dividend names that better align with my long-term goals.

2. Realty Income Corp (O) – Bought

  • Trade Date : May 13, 2025
  • Action : Buy
  • Quantity : 7 shares
  • Price per Share : $54.92
  • Total Cost : $384.44
  • Current Monthly Dividend : $0.2685/share
  • Annualized Dividend : $3.222/share
  • Total Annual Dividend from Holding : $22.55
  • Expected Next Ex-Date : July 15, 2025
  • Expected Pay Date : August 1, 2025

💡 Known as "The Monthly Dividend Company," O has a long history of consistent monthly payouts and occasional dividend increases.


3. Johnson & Johnson (JNJ) – Bought

  • Trade Date : May 13, 2025
  • Action : Buy
  • Quantity : 1 share
  • Price per Share : $148.94
  • Total Cost : $148.94
  • Current Quarterly Dividend : $1.24/share
  • Annualized Dividend : $4.96/share
  • Total Annual Dividend from Holding : $4.96
  • Expected Next Ex-Date : July 19, 2025
  • Expected Pay Date : August 7, 2025

💡 JNJ is a Dividend Aristocrat with over 60 years of consecutive dividend increases. Stable healthcare exposure makes it a core holding.


4. LyondellBasell Industries (LYB) – Bought

  • Trade Date : May 13, 2025
  • Action : Buy
  • Quantity : 3 shares
  • Price per Share : $60.69
  • Total Cost : $182.07
  • Current Quarterly Dividend : $1.34/share
  • Annualized Dividend : $5.36/share
  • Total Annual Dividend from Holding : $16.08
  • Expected Next Ex-Date : June 21, 2025
  • Expected Pay Date : July 10, 2025

💡 LYB offers a solid yield and has shown strong dividend growth in recent years. Exposure to chemicals and industrial sectors adds cyclical strength. 


🎯 Why These Stocks?

Let’s dive into each stock I added and why they fit well into a dividend-focused portfolio.

1. Realty Income (O) – The Monthly Dividend REIT

  • Dividend : $0.2685/month per share
  • Annualized : $3.222/share
  • Yield : ~5.9%
  • Why I bought it : Known as “The Monthly Dividend Company,” Realty Income has a long track record of paying consistent monthly dividends and modest annual increases. It’s a solid foundation for predictable passive income.

2. Johnson & Johnson (JNJ) – Blue-Chip Healthcare Giant

  • Dividend : $1.24/quarter
  • Annualized : $4.96/share
  • Yield : ~3.3%
  • Why I bought it : One of the most respected dividend aristocrats, JNJ has raised its dividend for over 60 consecutive years. With exposure to healthcare, pharma, and consumer goods, it's a low-risk, high-quality holding.

3. LyondellBasell (LYB) – Industrial Sector Dividend Player

  • Dividend : $1.34/quarter
  • Annualized : $5.36/share
  • Yield : ~4.3%
  • Why I bought it : LYB offers a strong yield and has been increasing its dividend steadily in recent years. As a major chemical and plastics manufacturer, it benefits from infrastructure and manufacturing demand cycles.

💰 Additional Dividend Income Added

With my current holdings:

  • 7 shares of O → 7 × $3.222 = $22.55/year
  • 1 share of JNJ → 1 × $4.96 = $4.96/year
  • 3 shares of LYB → 3 × $5.36 = $16.08/year

🧮 Total New Annual Dividend Income Added:
$43.59/year

That translates to about:

  • ~$3.63/month
  • ~$10.90/quarter

Not bad for just a few trades!


📊 Looking Ahead

This small batch of trades has meaningfully increased my dividend base. Over time, as companies raise their dividends and I reinvest proceeds, this income will compound and grow.

To help manage this growth, I’ve also created:

  • A dividend calendar to track upcoming payments
  • A projected income schedule by month and quarter
  • A cumulative tracker to monitor total dividend growth year-over-year

If you're interested, I can share the full Excel templates and tracking system I use to stay organized and focused on growing my passive income.


Final Thoughts

Building a dividend portfolio isn’t about making big, risky bets—it’s about consistency, patience, and smart allocation. Every small addition adds up over time, and today’s buys are laying the groundwork for a stronger, more resilient income stream tomorrow.

Here’s to more dividends and financial freedom in the years ahead!

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