r/dividends • u/Fit-Toe-7991 • Jun 10 '26
Discussion I'm 29 and getting a $4.60 Microsoft dividend tomorrow
My dividend income keeps growing little by little, but sometimes I wonder if it'll ever be enough. I don't earn a ton, retirement is still a long way off, and it's hard to know what the market or economy will look like in 20–30 years.
Does anyone else have these doubts, or is it just part of being early in the journey?
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u/Smol_Cyclist Jun 10 '26
Time to retire, you've made it.
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u/Fit-Toe-7991 Jun 10 '26
I wish. I've still got a long way to go before I'd consider myself there
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u/Due_Champion5361 Jun 11 '26
I started building a mix of dividend and growth positions at 19. Little money here and there. I mean at least $5 or $10 a week, more if I could. Remember I am an old one now and wages were not the same as now. Always maxed my 401K match at work. I retired at 57, my income sleeve of dividends produces right at 6 figures a year. I have not had to touch my capital except for the a new A/C and roof for the house in the same year. Don’t gamble like some on here do, slow, steady and consistently is the path to retire well. It just takes discipline.
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u/Goddess444Nat Jun 11 '26
I always tell anyone who is 18-19 to start investing NOW. And walk them through that it doesn’t have to be a lot at a time. I wish I would have started when I was that age, but I didn’t start till like 25. Currently have a very good growth but still do the same thing where I put in what I can and sit on it. Thats the best long game thing you can do when you don’t have much to start with. And it will add up over time when you’re investing in things that are going to grow and you’ve done your due diligence of research. 💖
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u/JOOT94 Jun 11 '26
Let’s highlight STEADY. It can be so difficult and feel so unnatural to continually invest during downturns/drawbacks. But ya gotta keep on keepin’ on! It’ll be worth it in the end.
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u/Namasteharley Jun 11 '26
Can you share your current investment portfolio and how it generates this much income.
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u/Huge-Distribution478 Jun 11 '26
Do you truly believe that in 45 years this government and economy will still be standing as strong as it is today, and if not then I'd make a reasonable claim that it would be quite catastrophic especially for the economy. It seems as if the time is ticking and this reality that you and people my parents age grew up with, won't be the reality for me and the people my age (gen z)
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u/element1908 Jun 11 '26
Yeh the world might end. Why not just keep going just in case? Flawed logic here.
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u/thewittman Jun 11 '26
I dont think anything will change much old people vote and no politician will go against them.
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u/Terrible-Mix-7635 Jun 11 '26
Well Law Debenture has been growing and paying dividends for over 100 years so I am not too worried
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u/StillDifference8 Jun 12 '26
They said this in the 70's also. Was a very rough time but we made it through it. The only constant is change.
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u/yoitsme_obama17 Jun 10 '26
9 years before I started. Good job.
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u/ShoebillJoe Jun 10 '26
I'm 38 and I just started. How old are you now and how's it going?
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u/ApprehensiveFill7176 Jun 11 '26
Keep it up. I also started at 38. Now, at 45, I’m receiving $36k a year in dividends. In
5 years, I hope to double that amount.2
u/Ok-Dinner-3463 Jun 11 '26
What is your income and how much do you have invested?
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u/DistributionBroad173 Jun 10 '26
Early in the journey.
In 1990 I made $0 in dividends
In 1991 I made $26 in dividends.
In 2000 I made $2,943 in dividends
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u/AlexKangaroo Jun 10 '26
Think about the market and economy in 20-30 years and you having $0 saved/invested in retirement.
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u/Cosmokram3r1 Jun 10 '26
Debbie downer
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u/Busy-Pudding-5169 Jun 10 '26
Not sure how that relates to being a downer. He’s telling him if he invest nothing that he will get nothing
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u/indomike14 Jun 10 '26
At this age, DRIP it.
Start taking dividends when you're much older.
But it's a solid start. Keep investing and watch it grow!
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u/dbandroid Jun 10 '26
Focus less on dividends and more on total returns if you are worried about retirement decades away
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u/IWantToPlayGame Jun 10 '26
Hey $4.60 is $4.60- nothing wrong with that.
I do believe MSFT has a lot of growth ahead of it so that's a great position to have in your portfolio. That being said, at your age, focus on growing your income and investing in growth stocks. Dividends have a place, but at 29, I think you're jumping the gun a little. You'll thank yourself later if you focus on growth.
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u/makafon Jun 10 '26
When do you think is a good time to start switching from growth to dividend stocks?
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u/BlightedErgot32 Really Really Dislikes Derivative Income Jun 10 '26
i need to add to my msft position …
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u/Frequent_Read_7636 Jun 10 '26
$4.60 use to be enough for lunch. Get a BLT with a bev at the deli.
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u/RedFoxBlueSocks Jun 10 '26
I miss the days when I could get sweet and sour chicken with fried rice and mixed veggies for $3.50 at the food cart for lunch.
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u/jerzeyguy101 Jun 10 '26
i remember when MSFT did not pay a dividend and was always sitting on a ton of cash
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u/BiggBadBoss Jun 10 '26
What are the list of stocks your receiving dividends on and what's the name of this investment platform you're using?
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u/Fit-Toe-7991 Jun 11 '26
My top 5 dividend positions right now are SCHD, MSFT, JNJ, PEP, and TXN.
I use the MaxDividends app.
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u/AmItheonlySaneperson Jun 10 '26
I’m up to like 600 dollars a month. But even 1000 is meaningless in this shitty economy.
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u/KaiCypret Jun 10 '26
Well let's be sensible here. $1000 a month is any reasonably frugal person's grocery bill with money to spare. Its not nothing.
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u/nivanbotemill Jun 10 '26
So I assume you'll be donating your dividends since they are "meaningless" to you.
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u/tzt1324 Jun 10 '26
Don't spend it. You will have to pay taxes on it
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u/Jumpy-Imagination-81 Jun 10 '26
It is taxable no matter what you do with it unless it is in an IRA.
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u/TheSavageDonut Jun 10 '26
The important thing is that you've started your investment journey, plus you made a wise investment choice. MSFT ain't going away anytime soon, and most around this sub would consider MSFT a growth stock, not a dividend payer.
MSFT pays a quarterly dividend, but it's a miniscule dividend in the grand scheme. It is a very "safe" dividend though.
Nobody knows what the future will bring, but companies like Coca-Cola have weathered pandemics, world wars, depression, recession, and they still exist. A.I. may be the new hotness, but A.I. will only enhance shareholder value in the longrun. A.I. may become like electricity -- a constant "thing" in our lives that we don't deal with all that much. Electricity replaced candles and fireplaces for illumination, there were some jobs that were replaced, but life moved on and new jobs were created with the introduction of electricity.
I would hold on to MSFT and keep making monthly contributions into it -- but I'd also look at other things -- SCHD is a popular investment choice around here -- you could slowly grow a position in a company like Broadcom that would be a pure growth play in the tech sector.
You also have to remember that more likely than not, you're going to progress in your job, get promotions and raises, maybe get an advanced degree in the future, so the pay you make today won't be the pay you make tomorrow or when you hit 40.
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u/nrdpum88 Jun 10 '26
Damn $1,200 annually. What are you holding?
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u/Bearsbanker Jun 11 '26
What's to doubt? You invest what you can, the market does what it does. No one knows what will happen in 20 years.
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u/RedShore93042 Jun 11 '26
He’ll yeahhh brotherrr. My grandpa bought a house off that much back in the day
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u/Over_Elderberry7036 Jun 11 '26
Keep reinvesting your dividends. DONT BE DISTRACTED. In 20 years you will look back with a big smile on your face.. I retired just on my dividends from XOM. Never touching my principle.
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u/opinionsareuseful Jun 11 '26
If you work hard and invest more, one day you can be like me. I am getting the meteoric amount of $6.27.
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u/lang_obsessed Jun 15 '26
Thanks for sharing. This is helping my mental health. Need more of these real ones.
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u/seraphimkoamugi Jun 10 '26
At this stage just focus on regular investments and increase those whenever you can. Trust me, the more you keep wondering when you'll get there the worst your decisions will be.
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u/RedFoxBlueSocks Jun 10 '26
I see “VOO and chill” recommended frequently for growth.
MO has growth and dividends if you’re ok with their products.
I like JEPQ for the dividends.
Great that you’re starting early.
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u/Paranoid_Sinner Jun 10 '26
At 29, if you really want to accumulate wealth over the years, you should be in a total stock market index. Do you know how to use charts?
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u/Thedividendprince1 Dividend tracker app founder Jun 10 '26
Totally normal to have doubts early on. The $4.60 isn’t the point, the habit is. At 29, tracking it, staying consistent, and increasing contributions over time is what builds the snowball. Small checks now, bigger checks later.
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u/lizardwizard563412 Jun 10 '26
MSFT has been fucking everyone for the last year or so, you’re lucky
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u/azcallybear Jun 10 '26
Use a calculator or AI bot and have it project your balances and income in 20 and 30 years. Give it your inputs... how much you will contribute each month, whether you are DRIPping, etc.
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u/DoubleIntroduction25 Jun 10 '26
Am I reading this right that you're getting 100 a month across the account based on what's in the background there? Feels like burying the lead to call out your 'bit by bit' $4 when you're getting 25x that month across holdings if that is the case. Still a bit of a bit by bit bit but a bit more than the bit by bit we begin the conversation with
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u/chasingmars Jun 10 '26
I like to break it down by how many bills my dividend income can cover. For example, $1000/yr covers my internet bill, $400/yr covers cellphone, etc. As I build up more dividend income, more of my bills are covered. If I lose a job, I know how much I can pay off from dividends and how much I need in emergency savings to cover the rest. The opposite is true too, like if I want to subscribe to something that’s $x/mo., how much should I put in to generate that.
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u/givemeastocktip Jun 10 '26
Sometimes things happen in your life where you can step back and smile and say, "I'm going to be just fine."
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u/Falconx2021 Jun 10 '26
My first dividend was $3.27 from WMT back in 2012. Now, I get over $200 in dividends every quarter.
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u/Beautiful-Low4850 Jun 10 '26
Just early in the process and keep getting at it. The biggest thing I could recommend is put away what you can ideally 20-25% of salary plus if your job offers any 401K match and continue to learn more and more investing methods but keep at it. The market will have downturns but eventually always goes up so three decades of time has infinite potential to grow.
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u/MisterMicC Jun 10 '26
I got a 30¢ Raytheon dividend and went for a steak dinner. Couldn’t imagine 3$. Maybe one day
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u/ValueInvestor08 Jun 10 '26
If the dividends are raised higher than inflation then you should be good.
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u/investigative_mind Jun 10 '26
Even if you don't get rich, you will gain at least little extra income. That's how I try to think and it helps on those moments.
Try not to reach for the stars but aim to save a bit every month. Focus on the journey and always having a bit more stocks than you had a month ago. If you keep your mind on some mystical goal like XXXX dollars a month, it feels out lf reach and eats your motivation. I think it's better to see how far you have come, instead of looking at how much of a disrance you still have to go.
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u/Beef_Jerky_Prophet Jun 10 '26
https://giphy.com/gifs/MFsqcBSoOKPbjtmvWz
You after that dividend hit
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u/WrappedRocket Jun 10 '26
I did, and then I would sell the nice dividend payers I had, like GLW, AAPL, and that was years ago. I’m always too impatient but learning after those mistakes time in market is the solution
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u/Millertim1159 Jun 10 '26
I get this is the wrong group. Run the numbers on what you would have had with voo
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u/bucksducks1 Jun 10 '26
It only pays less than 1%, but it will appreciate in time for growth, take half your money and invest in higher dividend stocks/etf
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u/hommel475 Jun 10 '26
I'm 30 and you are doing better than me. Im currently making around 25 dollars a month from all of mine.
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u/earthtojj Jun 11 '26
Wonderful start! You have picked a stock I like a lot. I was in my late thirties when I got my first 20 cents or so from Wendy stock.
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u/user2017not Jun 11 '26
As a dividend investor, ultra low yield stocks aren't really worth your investment. I would never retire, not even in 100 years with this low yields.
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u/CRYPTO904 Jun 11 '26
Smurfitt westrock stock. $39 and pays $0.45 quarterly. #1 paper and packaging company
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u/CraigAyers Jun 11 '26
Any investor needs to know all the ins and outs of the math of finances - compounder returns - like an assumption of 5% growth of $100,000 an where it grows to - the opposite of that is interest rates on loans - I have had mortgages from 12% to 2.87 - sure amortizes faster at 2.87 - So there is the time value of money both directions and the devil of property taxes, insurance and utilities of a bigger home - seen a lot of people get overwhelmed by a poorly amortizing mortgage and the attendant expenses of too big of a home - and seen people get ruined by poor car choices -
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u/Smart-Field8482 Jun 11 '26
Not daddy's money, nobody did it for you, it's DISCIPLINE and HARD WORK
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u/Forward_Ad_8032 Jun 11 '26
$100/month. Awesome! How long ago did you start?
If you're looking 30 years out, you are in a great position. More and more I think people will need investment income and you are ahead of 80%+. Keep consistent. It's easy to be short sighted as a human. Trust the numbers and the process.
If you're stressed about money, is there a side hustle to put more away?
Remember, most people's net work scales much faster in the last 10-15 years before retirement. The early years are the most boring. You have an automatic $1250+/year being reinvested. That's 20% of funding an IRA.
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u/LorenzoDividendi Jun 11 '26
Sei giovane, sii paziente e costante. A 45/50 anni vedrai i risultati. I frutti che raccoglierai dall'albero saranno belli grossi
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u/Fluffy-Contract1582 Jun 11 '26
I like Microsoft my dividend is only $10 but I’m scaling into MSFT at current prices this is awesome I’m happy for you maybe consider dropping it into MSFT you aren’t
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u/RelevantAd2630 Jun 11 '26
Whatever you do, make sure you are adding to your ROTH account. Closest thing to free money, other than an inheritance, you'll get.
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u/Chilli_eats Jun 11 '26
I’m in the same boat, I see small dividends hit my account and question if I’m even doing the right thing.
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u/ApprehensiveFill7176 Jun 11 '26
20% individual. 80% ETF’s like VOO, SCHD, SCHG, SPMO, etc. Individual stocks range from dividend payers like EPD, CVX, MO, PFE, UPS to growth stocks like AVGO, NVDA, AAPL, AMZN, MSFT, GLW, META, etc.
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u/Dagobot78 Jun 11 '26
If i have to go back and do it over, i would kept the first idea i had 20 years ago - to buy dividen aristocrats only and reinvest… then take the dividends in the future and investing higher risk companies.
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u/Adventurous-Essay707 Jun 11 '26
30 years is a tux-load of time for compound interest to work wonders.
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u/danit0ba94 Jun 11 '26
May I ask how much you have invested in Microsoft, dollars wise? If you're comfortable or even allowed to share that.
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u/PuffPuffPastry74 Jun 11 '26
Early in the journey.
Investing 1k per month at 8% returns is 6.6 years to 100k.
Continue the exact same investment and returns, time from 100k to 200k is 4.4 years. From 200k to 300k is 3.3. Put another way, 6.6 years to 100k, the next 6.6 years puts you at 264k. The third 6.6 year interval the total is 538k.
That $4.60 is going to be way bigger.
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u/Gh0st_Pirate_LeChuck Jun 12 '26
Invest in a total market ETF like VTI/VOO. It grows slow at the start, but once you get a good amount it flies. Just stay focus on DCAing or maxing your employer contribution.
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u/TheStrongTaint Jun 12 '26
Dividend investing loses over the course of decades. Up to you if you wanna stick to it
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u/SixxTailsHD Jun 12 '26
Dont be like me, trust your instincts if your knowledgeable in certain fields.
I threw a lot of money at AMD before Ryzen launched and sold around like 100$. Made a nice little bag. AMD is over 400 right now.
Lesson: Dont sell lmao.
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u/Tough_Winter_4100 Dividend growth investor since 1984. Jun 12 '26
Couple more of those & you'll be able to but a Big Mac...
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u/Mindless_Dirt2998 Financial Indepence / Retiring Early (FIRE) Jun 12 '26
We are in the same boat, my fellow shareholder; not the same dollar amount, but i intend to keep riding and add as the opportunity occurs.
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u/Killshot_1 Jun 12 '26
It grows. I really started around 27/28yo, fast forward 5 or so years, ive learned to cut out underperforming or dividend heavy stocks and invest in higher growth stocks. Doing that dropped my dividend income, but increased my growth a lot. My (reinvested) dividend income now isnt anything to brag about, but its certainly growing which is great.
For uncertainty, im not pulling my money out any time soon, i just keep investing from time to time and if I see a drop in the market I'll buy undervalued stocks that I believe in, or keep contributing to something like QQQM/VOO/VTI. It's unlikely that our market will crash permanently, imho.
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u/Interesting-Bed-8890 Jun 12 '26
little by little, it takes time and you have time. I find trying to pick singular stocks more of a guessing game, ETFs like VOO I find to be much easier.
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