📊 March At a Glance
Achieved ₩4.94M in after-tax dividends (98.9% of target). Amidst a volatile market where the S&P 500 and Nasdaq entered correction territory due to U.S.-Iran tensions, the total portfolio value increased by +2.30%. Recorded an actual dividend growth rate (including reinvestments) of +58.9% YoY.
💰 1. Dividend Performance
💡 PLAN B Insight: While geopolitical tensions triggered a market correction, dividend cash flow remained steadfast. This month demonstrated the defensive resilience of a portfolio centered on dividend-growth stocks and covered call strategies.
📈 2. Dividend Growth Rate (DGR) Analysis
Analysis: Actual dividend income grew by a staggering +58.9% YoY, driven by consistent capital injections and an increased weight in Covered Call ETFs. The Latent DGR of 7.79% ensures that the portfolio’s purchasing power will outpace inflation (CPI). According to the Rule of 72, an 8% DGR will double the dividend income every 9 years even without further investment. This is the core engine of my “Sustainable FIRE” project.
📊 3. Portfolio Status
- Asset Allocation: Maintained a 65% weight in U.S. assets, providing a natural dollar hedge against geopolitical risks.
- Volatility Control: While the S&P 500 and Nasdaq 100 hit correction levels (~10% drawdown), the downside was mitigated by the income-generating nature of covered calls.
- Liquidity Management: Maintained SGOV (iShares 0-3 Month Treasury Bond ETF) at 12%, keeping total cash-equivalent holdings at 15% to reduce overall portfolio beta.
📌 4. Key Transactions
- No new positions initiated in March. Focused on maintaining existing positions and observing entry points during heightened volatility.
- Strategy: Accumulating dividend payouts as a “dry powder” reserve for future rebalancing rather than taking impulsive action during the correction.
💭 5. Monthly Insights
March was dominated by geopolitical volatility. Escalating tensions between the U.S. and Iran pushed major tech indices into correction territory, while energy and defense sectors outperformed.
However, the core thesis of dividend investing was proven once again: Prices fluctuate, but dividends stay the course. Monthly dividend income grew +14.2% MoM, largely thanks to the stability of monthly-pay covered call ETFs (e.g., KODEX/RISE/TIGER series). This allowed the portfolio to close the month with a slight positive return despite the turbulent market.
🔮 6. April Outlook
Projected Dividends
- Target: $2,897 ~ $3,310 (84–96% of target
- Key Distributions:
- U.S. Monthly ETFs: QYLD, DIVO, SCHD (Div-Growth), SGOV
- Domestic ETFs: KODEX/TIGER/RISE Covered Call series
- U.S. Equities: MRK (Merck), MO (Altria)
- Domestic Equities: Samsung Electronics (Pref) Regular + Special Dividends
April Strategy
- Risk Monitoring: Track U.S.-Iran conflict; prepare for “Buy the Dip” if the correction deepens.
- Reinvestment: Focus on Big Tech (MAG7) or Targeted Covered Call ETFs (e.g., TIGER U.S. Tech Top 10 +10% Premium).
- System Upgrade: Enhance the Asset Dashboard logic for “Annual Expected Dividend Yield.”
- Mid-to-Long Term Goal: Stay on track for $34,482 (Annual after-tax dividends) for 2026.
✍️ Closing Thoughts
March was a sobering reminder of global economic uncertainty—war threats, trade tariffs, and interest rate jitters. The news is often grim, but my account balance told a different story: $3,412 was deposited.
Data does not lie. I will continue to record this journey toward financial independence with transparency. See you in the April report.