Passive Income: What a £500K Dividend Portfolio & Premium Bonds Paid Me This Month: January 2025

[@TheCompoundingInvestor]

How is your investing journey going in 2025?

[@SmarkInvesting]

January has been the best month I've ever had for dividends, started the year strong!

[@Fullersh1t]

Not doing bad! I currently sit on £300k in my ISA, this is growth stock but I'm looking at moving to Dividends once my pot reaches something more sizeable.

[@gurdeepchumber2764]

@@TheCompoundingInvestor about time you added sage my friend 😀

[@joemark8436]

BAD I went all in on AI! its going to be April until I get my money back I think :^(

[@joeyd1682]

Taxmans claw gets me everytime 😂 great video as always

[@TheCompoundingInvestor]

Thanks

[@rogerandout808]

Lol - The Jaffa Cake vs HMRC VAT court case 🤣🤣🤣

[@foggy9084]

Can we place bets on it 😂

[@AR24-7]

Glad to see you getting Sage. I’ve been holding their shares for coming up to a year and have been delighted with the return. I have good feelings about it’s capacity to grow in the US and build long term returns

[@kitcar765]

Up to £110 average monthly income. January added Phoenix, SSE, Speedy Hire, and Sainsbury’s. The dream is frequent dividend payments, big diversification. Wife is fully on board. keep doing the overtime to load up on dividend payers.

[@TheCompoundingInvestor]

Nice work! Reaching £100 monthly average is a fantastic milestone! Should hopefully speed up noticeably after this. All the best

[@Alan7997]

My compounding snowball and capital appreciation is finally beginning to take off in a non-trivial way after 4.5 years. I've seen £10,000 of growth in 5 months in a £80,000 portfolio.

[@TheCompoundingInvestor]

Nice work Alan! Onwards and upwards!

[@Norfolkpaul]

Very nice 😊my portfolio has gone up £35 this month from last year 😊so nice to see it growing.

[@TheCompoundingInvestor]

Good work Paul. Onwards and upwards!

[@Stu-j1t]

Great video as always - waiting for my Britvic shares to get sorted then contemplating a few different companies to replace them with

[@MrTTar]

I'm in the same position, I got the final dividend payment a few days ago - but am still waiting for the actual sales proceeds.

[@trunky3315]

Hello, i loved the cinematic with the monster ahah :) Great achievment, congrats. See you next time.

[@TheCompoundingInvestor]

Thanks Trunky. Best wishes to you and all in France

[@martinserwatka7128]

Thank you. Great job as always.

[@TheCompoundingInvestor]

You are welcome

[@barrywhite5899]

Great update. I’m personally waiting for May. Almost £2000 inbound from BATS, mng, MONY, som, Lloyds, phnx, Aviva, Greggs, srad and green oat across my SIPP and isa! I think I’ve got march and April looking good too!

[@interestedinmostthings6438]

Great video again, look forward to this monthly

[@TheCompoundingInvestor]

Thanks so much

[@SmarkInvesting]

Great video as always mate! Amazing returns so early in the year

[@TheCompoundingInvestor]

Thanks my friend. Yes it has been a good start to 2025. We will have to see how the rest of the year unfolds.

[@gurdeepchumber2764]

Nice video on Sunday morning,Great video & keeps me motivated 😊

[@TheCompoundingInvestor]

Thanks Gurdeep

[@FarmingInsightsTV]

Great video. Amazing journey. Keep it UP!

[@TheCompoundingInvestor]

Thanks so much.

[@ScottR-qi4tt]

£1175 in the jan draw me. Not luck I was due it haha

[@TheCompoundingInvestor]

Wow, great result. Fantastic start to the year!

[@mattsennett]

£300 for me in the January draw so a very positive start to 2025. Good luck in the February draw and well done with the AV. top up 👍🏻

[@TheCompoundingInvestor]

Nice win! Good luck for future draws.

[@iang6118]

it's a new month, new video. always chuckle when the taxman's claw comes into play lol

[@SaurabhTiwari-m9d]

Your diversified portfolio of large-cap stocks like GSK and ETFs such as the S&P 500, combined with a Stocks and Shares ISA for tax efficiency, is a solid strategy for long-term growth.

[@hammerradiology1470]

I really enjoy watching your videos! You’re such an inspiration…you must be an awesome teacher with your knowledge and humour 😅❤ oh and I’m at 58k- started last year- it’s just a shame we have to pay 26% on dividends here in Germany. 👋 Greetings

[@TheCompoundingInvestor]

Thanks, yes we are very lucky in the UK having a Stocks and Shares ISA to protect 20k a year from dividend and capital gains tax. I know it is very different in other countries. All the best on your investing journey.

[@NeilC22]

Thanks for the upload,cup of tea and the latest vid from the CI 👌- 2 divi for me this month,Pets and NG. for just over £200. Average now around £108 per week.

[@TheCompoundingInvestor]

Nice work Neil! £108 a week is awesome. Great milestone to have reached.

[@NeilC22]

@@TheCompoundingInvestor @ thank you,haven’t taken “investment advice” from your uploads but will admit I have borrowed some of the company’s you have used in yours I.e National Grid,would never have thought of them without you information 👍

[@Zlaterrr]

Nice increase YoY mate! :)

[@TheCompoundingInvestor]

Thanks. All the best on your own journey my friend

[@daves8728]

Thanks for the video TCI. A good tech edge is £POLR. I hold via £NAS in my SIPP. Jan was a good start to my year, nearly matching Q1 '24 and with only a £25 PB win and excluding my pie, which sits outside of my ISA for now. I'm expecting and average monthly income of just over £900 this year, but on a much smaller portfolio that yours. Currently reinvesting into clean energy and base metal miners given all of the copper required for the transition with a little speculation on £PXC, a pre-production play in the US.

[@EfremInvests]

From now on your dividend income will grow faster and faster.What is the final goal you want to achieve? Do you have a specific number you are aiming for?

[@TheCompoundingInvestor]

The ultimate goal would be for passive income to exceed wages from full time day job. I don't think I'll achieve that but the dream keeps me motivated to continue.

[@davidmacphee5449]

The taxman's claw! It's definitely a reminder to make all saving and investing as tax efficient as possible to strive for best return.

[@Southwestspearfishing]

What's your new holdings in sage?

[@TheCompoundingInvestor]

Just over 1k. My Barclays platform charges £6 a trade so I don't like buying in amounts less than 1k at a time.

[@mikeallen2914]

Are their dividend growth out performing inflation, or growing because of it?

[@TheCompoundingInvestor]

The latest analyst prediction for the FTSE 100 is a 6.5% yearly increase in dividend growth for 2025. I guess that is above inflation. It can of course all change from year to year. Not all companies pay dividends of course. There is usually capital growth as well. My portfolio had a net return of 16% for the whole of 2024.

[@AshJun17]

I've only started single stock investing over the last 3 months but really enjoying it. Up around 23% through my holdings in burberry and vw. My investing strategy is probably a little different to yours but it's interesting to see what you are buying!

[@TheCompoundingInvestor]

All the best on your journey

[@alexbright7735]

At 06:30 YoC .. does that mean if you would have sold everything last year and bought FTSE100 you will have receieved 3.5% yield, but because you invested over many year, often at lower costs, you actually get 5.9%?

[@TheCompoundingInvestor]

Yes that's correct. Companies tend to raise their dividends over time so you get more dividends per share the longer you hold them. There is always risk however and dividends are never guaranteed. To work out the yield on cost I simply divide the total dividends paid over the last year by the amount I've put into the platform since I started and then multiply by 100.

[@alexbright7735]

@@TheCompoundingInvestor Thanks

[@bingebinge3722]

So that's an annual dividend yield of roughly 3.6%? Is that a lot?

[@TheCompoundingInvestor]

There is capital growth as well as dividends. Share prices tend to go up over the long term. Return on investment for 2024 was 16%.

[@gurdeepchumber2764]

This year I've reduced my holdings down from 25 stocks to 20 to reduce my reinvesting costs & upped my VUSA & VEVE ETFs🙏🏽

[@stuarthill1784]

This is very interesting and useful, So and update from my last comment on your last video. I now have £15k set aside at my emergency fund I currently set up two eft and Vanguard s&p 500 and VHYL and I’m putting £10 in every day automatically as I wish for these to be the base of my investments I have another £15k set aside for investing , £5K each In to my s&p and VHYL, and other £5K for maybe some individual stock or another ETF But I’m in no hurry just testing the water with my auto invest in my two etf and when the time is right and I feel comfortable with risk I’ll add the rest

[@TheCompoundingInvestor]

Thanks for sharing details of your journey

[@Samien]

Question. If MNG is paying 10% why not invest ?

[@TheCompoundingInvestor]

I generally don't buy shares with a dividend yield so high but to be fair MNG has done pretty well over the years and continues to churn out cash. I'll keep an eye on it for sure.

[@matteden7535]

Had a really strong month in January but looking for the right entry point for my next investment, Think the SP you have in this update are a little old on a few positions (I own some of them so raised an eyebrow)

[@TheCompoundingInvestor]

Yeah I have to do the slides a week in advance as I have a full time day job and the last week is probably one of the best for the FTSE in a long time.

[@simonruddle6511]

A great start to 2025. I wonder if Trump will impose his tarriff's on the U.K.? If so, I worry for big UK exporters like Rolls Royce/GSK/Astra.

[@TheCompoundingInvestor]

Good point raised. Definitely keeping eyes peeled.

[@chrisgeorgiou1516]

What are your thoughts on QYLP? I hold some as a passive div. Income but haven't yet found the perfect balance between income stocks like QYLP and growth stocks such as ASML. And would you ever consider such an income stock for your portfolio? I believe they currently yield around 10%

[@TheCompoundingInvestor]

Most of my new money goes into the S&P500 and that has a lot of tech / growth stocks. I'm happy with that and don't feel I need to venture into a Nasdaq only ETF

[@ggoog1845]

Where do you find out about the million pound jackpot winners (premium bonds) so early?

[@TheCompoundingInvestor]

Link is below or you can just google premium bond high value winners. www.nsandi.com/prize-checker/winners

[@ggoog1845]

@@TheCompoundingInvestor thanks.

[@davegriff1593]

The million quid one was last month's, you can only find out a day before they publish it, the daily mail do it a day before but you will not find out if you have won till the actual day.Unless if course it's the big one and then they come your house the day before. I'm not going out this Monday, waiting for the knock.

[@philiplythgoe7173]

No VAT on Jaffa cakes by the way, unlike chocolate biscuits. Good choice...

[@SunilDachmann-mg7mm]

I would have taken the jevvercake

[@asimpervaz9728]

How come some companies are expressed in "GBX" or in "P"

[@TheCompoundingInvestor]

UK listed companies on the London Stock Exchange are quoted in British Pence I believe.

[@TangoEchoAlphaUK]

Mmmmm, Jaffa Cakes :)

[@adamtennant129]

With no doubt passive income is not just a key.. but the major key to financial freedom. You can't make it to the stage of financial freedom through a paycheck, i'm sure every wealthy person out there doesn’t joke with making investments. Started off my journey of passive income earning on stocks and I’m making a good yield on my dividends too. I've been able to grow to a 7 figure portfolio, i always tell others to go into stocks.. I love passive income.

[@billcresta]

Select 10 blue chip stocks that pay increasing annual or quarterly dividends and reinvest all dividends You will succeed like you never thought possible.

[@stephmeldrich6765]

what technique do you make use of ?

[@harrisonkyunghee]

A bit new to me do you by any chance do referrals on your advisor? and if you do I would like to know more

[@XarJFH]

I would take a Jaffa Cake

[@MatthewMills.]

How are you able to find out how much you won in January already? On the PB website it says the results will be revealed on 04/02/25.

[@TheCompoundingInvestor]

04/02/25 will be the February draw. The January draw happened at the start of January.

[@alexflips393]

Anyone else really like Haleon? They’ve got some strong brands.

[@BricksBlocksMocs]

Are you expecting the new tariffs being implemented to start affecting your portfolio in anyway?

[@TheCompoundingInvestor]

Its something to keep an eye on and contemplate possible impacts. The UK market has made a decent start to 2025 so far at least.

[@macmoore4599]

January paid me £8.30 plus £25 Premium Bond win

[@TheCompoundingInvestor]

Good work

[@Flamer997]

Can't believe he didn't accept the Jaffa cakes, and he dropped some, that's just unacceptable.

[@richclean]

last year my premium bonds paid lots so I put that into crypto…😮

[@Abdul_Rahman86]

Offering the Tax man a Jaffa cake is flex in itself!!

[@balance3201]

On a 4 percent savings account you'd get 1666 a month on 500000 without the time n worry of investment.

[@TheCompoundingInvestor]

But you wouldn't get capital growth. My return on investment for 2024 was 16%. To beat inflation over the long term you need to take some risk. You have to ask yourself if its actually more risky being out of the stock market than in it. If you are out of the stock market, inflation is guaranteed to erode your wealth over the long term.

[@balance3201]

@TheCompoundingInvestor there is no guarantee on capital growth unless it's property in some areas. This opens the question where one is in terms of retirement n if one is comfortable with drawdown on saving s.

[@TheCompoundingInvestor]

Over the long term, inflation is higher than savings rates in a bank and therefore the purchasing power of savings will erode significantly. Over a 10 year period your savings will only have around 30% less purchasing power. Yes there are times when interest rates spike upwards but this is usually temporary. Historical data shows that investing in the S&P500 which has returned more than 10% per year on average beats property in terms of average annual returns, meaning it generally generates higher long-term profits than real estate investing. The thing about stock market investing is that is can have serious short term volatility and we all have a different tolerance to this and of course investing time horizons and the ability to wait for it to recover. The stock market is not suitable or appropriate for everyone and I understand that completely.

[@Bludshot920]

Interest rates are on the way down, they won’t stay at 4% forever

[@balance3201]

@Bludshot920 true but you might see a blip in March with economic slowdown