Building Momentum: January’s Dividends Set the Tone for a Powerful 2026

 January isn’t finished, but my Robinhood portfolio is already sending a clear message: consistency compounds. Even with several payout dates still ahead, I’ve already collected $158.64 in dividends, every dollar reinvested through DRIP. This early momentum doesn’t just look good on a spreadsheet — it sets the emotional tone for the entire year.

And the best part? This is only a portion of my total dividend income. These payouts reflect Robinhood only, not my full portfolio across all brokerages.

A Partial Month With Full Momentum

What makes this early‑January snapshot compelling is the balance of companies contributing to it. Each dividend reflects a different corner of the market, a different business model, and a different cash‑flow story — all working together to build a diversified income stream.

Dividends Received So Far (Robinhood Only)

• Altria (MO) — $52.86

• Illinois Tool Works (ITW) — $22.54

• Starwood Property Trust (STWD) — $40.07

• Dollar General (DG) — $28.75

• Cisco Systems (CSCO) — $14.42

Total so far: $158.64 And January still has days left.

Year‑Over‑Year Growth: The Story Behind the Numbers

Even with only partial data, the YoY growth is already visible. Here’s how these same positions paid me in January 2025:

Stock	Jan 2025	Jan 2026 (so far)	YoY Growth
MO	$47.41	$52.86	+11.5%
ITW	$20.48	$22.54	+10.0%
STWD	$36.26	$40.07	+10.5%
DG	$28.59	$28.75	+0.6%
CSCO	$13.71	$14.42	+5.2%

This is the kind of growth that happens quietly — the kind you only notice when you track your numbers year after year. It’s the reward for staying invested, reinvesting dividends, and holding companies that consistently return capital to shareholders.

Why This Partial Month Still Matters

Even though January isn’t complete, this early snapshot tells me a lot:

• My dividend‑paying companies are healthy

• My reinvested shares from last year are already boosting payouts

• My income stream is expanding before the month is even over

• My long‑term strategy is aligned with real, measurable results

This is the kind of early‑year momentum that builds confidence and reinforces discipline.

The Road Ahead

With more payouts still to come — both in Robinhood and across my other accounts — this $158.64 is just the beginning. As companies announce dividend increases, as DRIP adds more fractional shares, and as new capital enters the portfolio, the story of 2026 will continue to unfold.

If this partial January is any indication, this year won’t just be about collecting dividends — it will be about compounding with purpose.

Master the "Wheel": How I Generated $1,398+ in 3 Months with IREN

 Options trading is often viewed as high-risk, but when applied to a stock you actually want to own, it becomes a powerful income generator. Over the last three months, I’ve been running the Wheel Strategy on IREN (Iris Energy).

By systematically selling puts, taking assignment, and then selling covered calls, I turned a volatile crypto-mining stock into a consistent cash flow machine. Here is the step-by-step breakdown of the trade.

---

Phase 1: Selling "Insurance" (The Cash-Secured Put)

The Wheel begins by selling Cash-Secured Puts. The goal here is simple: get paid to wait for a better entry price on the stock.

From November through December 2025, I sold multiple put contracts, "rolling" them forward to collect more premium while IREN’s price fluctuated.

• Nov 03 – Dec 22: Through a series of six trades and "rolls," I collected a total of $611.00 in put premiums.

• The Strategy: Even though I didn't own the stock yet, I was already generating a "dividend" from the volatility.

Phase 2: The Assignment

On January 2nd, 2026, the stock price dipped below my strike, and I was assigned 100 shares of IREN at $43.50.

• Initial Outlay: $4,350.00

• Effective Entry: Because I had already collected $611 in put premiums, my "real" cost for those shares was already down to $37.39 per share ($3,739 total).

Phase 3: Collecting Rent (The Covered Call)

Once I owned the shares, the strategy flipped. I started selling Covered Calls—essentially charging other traders for the right to buy my shares if the price skyrocketed.

• Early Jan: I sold the $45 Call and rolled it twice for a total of $437.00 in call premiums.

• The Final Move: I sold the $47 Call expiring 1/30. This setup allows me to profit from both the option premium and the $3.50 per share increase in the stock's value ($47.00 sale price - $43.50 buy price).

---

The Final Scorecard

If IREN remains above $47.00 through January 30th, the shares will be called away, and the trade cycle completes. Here is the total profit breakdown:

Component	Amount
Capital Gains (Sale at $47 vs $43.50 Buy)	+$350.00
Put Premiums (Nov - Dec)	+$611.00
Call Premiums (Jan)	+$437.00
Total Realized Profit	$1,398.00*

Why This Worked

1. Cost Basis Reduction: I didn't just buy IREN at $43.50; I used options to lower my "break-even" point by over $10 per share.

2. Patience Pays: By "rolling" positions rather than closing them at a loss, I stayed in the game until the trade turned profitable.

3. High Volatility (IV): Crypto-related stocks like IREN often offer higher premiums, making the Wheel Strategy particularly lucrative for disciplined traders.

---

What’s Next? Once these shares are called away on Jan 30th, I'll have my $4,350 back plus nearly $1,400 in profit. The best part? I can start the cycle all over again by selling a new put!

48 Hours to Expiry: My Game Plan for This Week’s Options Madness

 We’ve all been there. You open your brokerage app, and the screen is a sea of green and orange. It’s Wednesday, January 14th, and I have a handful of positions expiring this Friday. Some are "set it and forget it," but others? They’re requiring some serious math and a bit of soul-searching.

If you’ve been following my journey, you know I love selling premium. It’s that sweet "Theta decay" that lets me sleep (mostly) soundly while time eats away at the value of the contracts I’ve sold. But this week, things are getting spicy.

The Elephant in the Room: My Confluent (CFLT) Dilemma

Let’s talk about the big one: CFLT. I sold a $23 Call that expires this Friday. Right now, that contract is trading at $7.65.

Here is where the personal math comes in: My average cost for CFLT is $18. Because the stock is trading so high (implied price around $30.65), my "sold" call is deep in the money. If I do nothing and let it expire:

• The "Loss": I’ll feel like I'm losing out on that extra $7.65 per share of upside.

• The Reality: I’ll be forced to sell my shares at $23. Since my cost basis is $18, I’m still walking away with a $5/share profit (plus the original premium I collected).

It’s a "task failed successfully" moment. I’m being "forced" to take a profit, even if I’m leaving money on the table. Do I buy it back to keep the shares, or just take the win and move on? I’m leaning toward letting the shares go and high-fiving myself for a successful trade.

The Rest of the Roster

While CFLT is the headliner, the rest of the portfolio is a mix of "easy wins" and "sweaty palms":

• The "Free Money" Crew: My short calls on SMCI ($53), SOUN ($22), and HOOD ($135) are all trading for $0.01 to $0.04. These are essentially dead in the water. I’m happy to let these expire worthless and keep every cent of that premium.

• The ROBN & SOFI Puts: These are a bit closer to the pin. My ROBN $56 Put is at $1.05. If Robinhood dips below $56 by Friday, I’m buying 100 shares. Honestly? I don't mind owning the stock at that price, so I’m letting this one ride.

• 
  

The $950 Lesson: Transparency, Puts, and the Reality of the "Moonshot"

• The Reddit Moonshot: I have one RDDT $300 Call I bought for pennies. It’s worth $0.03 now. Is Reddit going to $300 in 48 hours? Highly unlikely. But hey, every portfolio needs a little "what if" energy.

There’s a specific kind of silence that happens when you open your portfolio and see a trade you once had high hopes for sitting at a -99.7% loss.

For me, that’s the RDDT $300 Call.

I bought this back in October 2025. At the time, Reddit was the darling of the market, the $300 price targets were flying around from analysts, and I felt like I was catching a rocket ship. I put $950 on the line. Today? It’s worth $3.

It’s a "good loss." Why? Because it’s a reminder that even when you’re right about a company (Reddit has actually performed well), you can still be wrong about the timing and the theta.

My Strategy for Friday

When you're selling options, you have to be okay with the outcomes. For me, Friday is about simplification.

1. CFLT: I’m likely going to let the shares get called away. A profit is a profit, and I can always sell puts to get back into the position at a lower price later.

2. Lotto Tickets: I'll let the RDDT call expire. It was a cheap thrill.

3. The Sells: I'll let the OTM calls expire to clear up my "Positions Held" screen for next week's trades.

Trading isn't just about the charts; it's about managing your own psychology when the clock is ticking.

From $200 to $23,000: A 12-Year Dividend Mastery Case Study

 

The "Overnight Success" Twelve Years in the Making

In 2014, the desidividend portfolio generated a modest $197.03 for the entire year. To many, that might have seemed insignificant. Fast forward to December 31, 2025, and that same portfolio has just closed out a year with $23,644.46 in total passive income.

This isn't just a report; it’s a roadmap of what happens when you combine consistent contributions with the relentless power of compounding.

Year	Annual Total	YoY Growth (%)	Avg. Monthly Income
2023	$16,891.70	+15.8%	$1,407.64
2024	$19,271.66	+14.1%	$1,605.97
2025	$23,644.46	+22.69%	$1,970.37

The 102.90% Milestone: Our goal for 2025 was $22,978.00. By hitting $23,644.46, we exceeded our target by nearly $700, driven by a massive Q4 surge in financial and tech payouts.

---

Anatomy of the "December Surge"

December has historically been our strongest month, but the 2025 jump was exceptional.

• Dec 2015: $16.77 (The humble beginnings)

• Dec 2020: $1,320.17 (The 'comma' milestone)

• Dec 2024: $4,032.19 (Solid stability)

• Dec 2025: $4,360.57 (The new all-time high)

This 8.14% YoY increase for the month of December was underpinned by heavy hitters like AVGO, SCHD, and DFS, which have become the engine room of this portfolio.

---

Seasonal Trends: The "Quarterly Pulse"

Looking at the 2025 data, we see a clear "pulse" in the portfolio’s cash flow. Our income clusters around the end of each quarter:

• Q1 Peak (March): $3,633.21

• Q2 Peak (June): $3,703.83

• Q3 Peak (September): $4,252.44

• Q4 Peak (December): $4,360.57

This quarterly rhythm allows for significant "reinvestment lumps," where we can strategically deploy capital into undervalued sectors four times a year.

---

The Road to 2026: Projections & Strategy

With a $23,644 baseline, the "snowball" is now a "boulder." Even with zero new capital, 2026 is mathematically poised to be our first $25,000+ year.

1. Dividend Growth Rate (DGR) Focus

We aren't just looking for high yield; we are looking for dividend growth. Our 2025 YoY total growth of 22.69% was aided by new capital, but our organic DGR remains a healthy 7–9%.

2. Sector Rebalancing

As we move into 2026, we are monitoring the spread between our high-flyers (AVGO, DFS) and our defensive anchors (JNJ, KO). Balance is key to ensuring this income remains recession-proof.

3. The $2,000 Monthly Floor

In 2014, we didn't even make $200 in a year. In 2026, our goal is to ensure that not a single month drops below the $1,500 mark, with an average monthly floor of $2,100.

---

Conclusion: Trust the Process

The data from 2014–2025 proves that the hardest part of dividend investing is the first three years. Once you cross the "mid-four-figure" annual mark, the momentum becomes difficult to stop.

Dividend Growth Milestone: December 2025 Portfolio Analysis

 As 2025 draws to a close, it is time to reflect on the growth of the portfolio over the last twelve months. December has traditionally been a "heavy" month for distributions, and this year was no exception. By looking at the raw data, we can see exactly how the portfolio has evolved since the same time last year.

The 2025 market was defined by "record-breaking resilience." While the S&P 500 saw a total return of about 17.9%, much of that was driven by earnings growth and continued AI momentum. However, for income investors, the real story lies in the steady climb of those monthly and quarterly payouts.

The portfolio concluded 2025 with a total December dividend payout of $4,360.57, representing an 8.14% year-over-year (YoY) increase from December 2024’s total of $4,032.19. Despite a volatile spring defined by trade "reciprocal tariffs," the portfolio's core holdings—specifically AVGO, SCHD, and DFS—delivered robust organic growth, outpacing the 2025 S&P 500 average dividend growth rate of approximately 5.5%.

Macro Review: The 2025 "Resilience" Rally

The 2025 market was characterized by what analysts call "Record-Breaking Resilience." While the spring saw significant volatility due to the "reciprocal tariff" announcements, the market found its footing in the second half of the year. The S&P 500 concluded 2025 with a total return of 17.9%, but for the desidividend strategy, the focus remained on cash-flow reliability.

The "December Drivers": Top Performing Holdings

The growth this month was driven by a mix of organic dividend raises and strategic share accumulation (DRIP).

• COF: A standout performer with a jump from $136.05 to $159.71 (+17.39%). The financial sector's strength in late 2025 provided a significant boost to our year-end totals.

• SCHD (Schwab US Dividend Equity): Our core ETF position saw distributions rise from $85.08 to $115.04. This 35% increase is a direct result of aggressive reinvestment during the mid-year market dips.

• AVGO (Broadcom): Maintaining its status as a "Growth & Income" hybrid, Broadcom delivered a solid 11.14% increase in payouts YoY, fueled by the ongoing AI infrastructure expansion.

---

Analysis: Hitting 102.90% of the Goal

Reaching $23,644.46 in total annual dividends against a goal of $22,978.00 is a testament to the power of the Dividend Growth Investing (DGI) framework. This "over-performance" was primarily driven by:

1. Organic Dividend Hikes: Companies like LMT, JNJ, and SHEL raised their payouts at rates exceeding the 2025 inflation average.

2. The Reinvestment Engine: By staying fully invested and allowing dividends to purchase more shares throughout the 2025 "Spring Dip," we effectively lowered our cost basis and increased our forward yield.

---

Looking Forward to 2026: The Path to Financial Sovereignty

As we enter 2026, the strategy remains steadfast but watchful. With a new fiscal environment emerging, we are focusing on:

• Defensive Yield: Strengthening positions in Consumer Staples (KO, HSY) to hedge against potential 2026 cooling.

• Yield on Cost (YOC) Tracking: We will continue to monitor the YOC of our early 2024 tranches, which are now beginning to yield significantly higher than the current market average.

2025 Goal:

I officially finished the year with $23,644.46 in total dividends, hitting 102.90% of my annual goal. Exceeding my $22,978 target by over $666 gives me a massive boost in confidence (and capital) as I pivot into the 2026 growth phase.

Conclusion

2025 was the year the desidividend portfolio moved from "stable" to "surging." Surpassing our annual goal by nearly 3% provides a massive psychological and financial headstart as we begin the 2026 journey.

Kickstarting 2026: A $1,000 Week in Option Premiums

The first week of January is usually about resolutions, but in the markets, it’s about volatility. While the broader indices are feeling the New Year "hangover," I’ve spent the last few days turning market swings into a consistent income stream.

As of January 6th, I’ve already locked in over $1,000 in gross premiums. Here’s the breakdown of the strategy, the assignments, and why cost basis is the most important number in your portfolio.

The market is having a massive New Year’s hangover today. IREN is down 10% and the sea of red is making people rethink their entire 2026 strategy.

Me? I’m unfazed. While everyone else is watching their portfolio value shrink, I’m busy collecting premiums.

In the first 5 days of January, I’ve already generated $1,038.90 in gross premium. Here’s exactly how I’m playing a volatile market and why I actually wanted to be assigned shares.

1. The "IREN" Safety Net

On Jan 2nd, I got assigned 100 shares of IREN at $43.50. Most people hate assignment—they see it as a "loss" on a put.

I see it as an opportunity. Because I’ve been playing this correctly, my average cost is actually $40.45. So even with the stock dumping to $43.43 today, I’m still sitting on a gain.

Yesterday, I "sold the ceiling" by writing a $45 Call for this Friday. That move alone put $229.96 in my pocket. If the stock rallies, I sell for a massive profit. If it stays down? I keep the cash and do it again Monday. That is the power of the "Wheel."

2. High-Octane Income: RDTL & HOOD

I don't just play it safe; I go where the juice is.

• RDTL (2x Reddit ETF): This thing is a volatility monster. I sold a $60 Call for Feb 20 and collected a staggering $699.98. That’s nearly $700 for one contract.

• HOOD: Caught the Robinhood rally yesterday and sold the $135 Call. It netted me another $108.96.

The Receipts (Jan 1 - Jan 6):

• RDTL Premium: $699.98

• IREN Premium: $229.96

• HOOD Premium: $108.96

• TOTAL CASH COLLECTED: $1,038.90

The Mindset Shift 🧠

Most traders are "directional"—they need the stock to go UP to make money.

I’m a "premium seller." I just need the stock to not go to the moon, or just stay right where it is. By selling calls against my positions, my effective cost basis on IREN is now $38.15. The stock could drop another 10% tomorrow and I’d still be breaking even.

The goal for 2026 is simple: Stop gambling on price action and start acting like the casino. Collect the rent. Lower the basis. Repeat.

Who else is printing money while the market bleeds? Let’s talk strategy in the comments. 👇

#Investing #OptionsTrading #PassiveIncome #IREN #HOOD #TradingStrategy #WealthBuilding