How To Build a 6-Figure Stock Portfolio from Scratch

Dividend growth investing is a fantastic strategy. I've personally used this strategy to go from below broke at age 27 to financially free at 33. I now manage a very large dividend growth stock portfolio. I mean "large" in every sense of the word.

It's got over 100 stocks in it, so it's large in terms of holdings. It's valued at well into the six figures, so it's large in terms of value. And it produces enough dividend income for me to live off of, so it's large in terms of passive income production.

I did all of this without a high-paying job or a college degree - after growing up on welfare as a kid. So I know that this is possible for just about anyone out there. But how do you actually go about building a dividend growth stock portfolio?

The first tip? You should create a plan before you start creating a portfolio. Otherwise, you're flying blind.

This should be a business plan, because you're a businessperson investing in businesses.

This business plan should lay out everything related to capital allocation and overall portfolio construction, including which stocks to buy, how much stock you'll buy each month, how many stocks you will own, why you will buy stocks you'll buy, when to buy stocks, how much income you want to produce from the portfolio, and by what date you want to accomplish all of this.

Before I started investing, I had all of this laid out.

One of my big objectives was to become financially independent by 40 years old. But I just couldn't wait that long, so I was even more aggressive than I originally planned on in terms of frugality, working, hustling, saving, and investing. Other than speeding things up, most everything else I originally laid out is what I'm still working with to this day.

Which stocks should you buy?

It's up to you. But I stick to high-quality dividend growth stocks. This is a universe of hundreds of world-class businesses that produce reliable, rising profits and pay out reliable, rising cash dividends to their shareholders. I've talked about dividend growth investing almost to the point of ad nauseam, but that's only because it's a dead horse worth beating. These truly are some of the best stocks in the whole world.

Where do you find these stocks?

It's an invaluable resource that contains data on more than 700 US-listed stocks that have increased their dividends each year for at least the last five consecutive years. World-class businesses like Apple Inc., Johnson & Johnson, and Lockheed Martin Corporation are on this list. As are hundreds of others.

So how many stocks should you own?

Not having a time frame in mind would be like setting out on a road trip without any idea as to when you will get there. Nobody would do that. You would know where you're going, why you're going there, how you're getting there, what speed you're traveling at, and when you'll get there. All the same, there should be a time frame in mind in terms of what date you want to build a certain-sized portfolio by, which will produce the passive dividend income you need to have the lifestyle you want to live. When you build that kind of framework, which will be based on your particular finances, you almost can't help but succeed over the long run.

#6FigurePortfolio #DividendGrowthInvesting

LEGAL DISCLAIMER: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose your entire investment. If your money is not FDIC insured, it may decline in value. Jason is not a licensed financial advisor, tax professional, or stockbroker and he does not purport to be. The links above may include affiliate commissions paid to the owners of Dividends and Income and help support this channel.

[LoganDec]

You did a lot of videos. This one? A must watch for all the young investors out there.🙏

[matthewfarrell]

That plan part really helps.

When the pandemic started I started to pivot things and wanted more stability, rather than be paycheck to paycheck. First part of the plan is nearly finished, 18 months building a food forest and raised garden bed, Enough to feed my family of 6 with 100% of our fruit covered, 20-25% of our veggies covered. Second part of the plan was investing and growing a portfolio for the long term which we are beginning now.

I did find it amusing at the emotional and irrational part of investing, my gf wants me to handle it because I am autistic, love numbers and am very flat emotionally.

[Tippix]

The MOST important Part is to write down why you Bought something, take notes about the whole research.
I didnt do that at first, its a hell lot of work to repeat the process at a later time.

[i_did_it_for_The_dividend]

Excellent content! Can’t believe the constant quality videos you churn out! Much appreciated 🙏🏼

[kevinsnyder]

The best by far on YouTube. Thanks Jason.

[The_Bronze_Spoon_Investor]

I love dividends and manage a Very Large portfolio that was made through HARD WORK! Great tips Jason! Gotta start with a business plan, well said!

[FearfullyGreedyInvesting]

Great job Jason! Show people the way 🔥

[yvelf]

Excellent vid! The content of this vid is very valuable for anyone looking into dividend investing!
Great Work!!!

[investforyourfuture]

Thank you. I want to start dividend investing and have added 30 stocks to my portfolio, is it wise to dollar cost avg. into these stocks every week?

[garystrickland-clark]

Hey @Jason Fieber - love your stuff, your work has had a direct influence on my strategy and investment choices - I can't thank you enough. But I can ask you if you have considered covering companies outside of the US? I'm in the UK - there are opportunities here, in Europe and Asia - for example, what's your view on Alibaba? Some of the big investors (Munger, Dalio etc.) are wading into that pond up to their necks! Either way, thanks for your content! 👍🙏

[tomTom-lbcu]

You sound very similar to Peter Lynch and that’s a good things. Great video. People need this refresher.

[stevew]

Informative and inspirational video thank you. Confirms I’m on the right path.

[geoffreylittle]

I love your channel Jason! Dividend growth investing makes sense.
My only question is how do you go about determining a company’s intrinsic value and what platform do you use to obtain those financials?

[kevinsnyder]

Jason, I'm trying to stay diversified and I'm buying dividend paying stocks from all sectors and sub sectors. Are there any sectors that you avoid and do you have a few favorite sectors that a person should be heavier in than others? Thanks for all your knowledge over the years. you have taught me so much since I started this ride called investing. Not trading, investing. Thanks,

[hraserrd]

Just curious. What side hustles did you do when you first got started?

[zzsouthnorfolkzz]

I got 10 years more on my portfolio. It pay all my bills 😊 a red day is great day to buy more 🤑🥳

[coocoocachooglin]

@Jason: This video is for people building over time, but what about building all at once? I have about 600k in Schwab 401k low cost broad market index funds, I may be soon out of work/laid off/retired. In that case, I will need to move my 401k to a Self Directed IRA, and then I will need to pivot it from growth to generate income since I'm old enough to take withdraws. What should I convert those index funds into to generate income?

[Sherman]

Yeah, I get analysis paralysis when making the plan. Thank you for the insight!

[richhmilesfattofit]

Great lesson here from Jason, if you set goals and set up a plan to achieve your goals the only outcome will be success

[aeksinsang]

Love it. I miss Chiang Mai. The markets, food, and those sexy girls all around like CMU