Dividend investing was the initial strategy I chose to go with, with a concentrated focus on blue chip stocks. Think well-known names like Coca-Cola, Hershey, Disney, Shell, Starbucks, and Simon Property Group.
It wasn’t until 2021/2022 that I focused on adding some growth to my strategy and bought some ETFs like QQQM, FINX, SPTM, and VOO to make sure that I wasn’t just playing defense with my positions. (I also now know some of those funds overlap.)
Blue chips do well in a downturn, but when the market is bullish, they can lag behind S&P 500 returns, which I noticed back in 2023. However, as all great investors learn, sticking to one strategy is the best way to build wealth over time and to not get caught up in another person’s returns or what the market is doing.
2023 was all about automating into VOO (personal portfolio) while I stepped back and went back to the basics—reading articles and books that helped me become the investor I was aiming to be. I went over my investments and found that I did better with my original plan of investing than I did when I was trying to focus on a growth strategy.
I found that I make my money best on businesses that grow and keep increasing their dividend payouts, while continuing to add to existing positions or adding new positions that fit with my original investment strategy, whether it’s for my personal portfolio or the private investment fund.
Making Money Through a Balance of Dividend and Growth Investing
With that said, most of my returns have come through old-fashioned dividend growth investing in solid companies that are able to increase and sustain dividend payouts year over year while the per share price increases—albeit slowly, but still increasing—as the fundamentals of the businesses remain intact and a holding of VOO adds additional exposure.
Some might see this as counterproductive since VOO already covers most, if not all, blue chip companies. However, given that the price you pay for a stock should always be considered in order to garner significant returns, it made sense for me to hold VOO which tracks the SP500 while I am waiting to get my hands directly on certain companies.
It has been a balance that has paid off for my own personal strategy, and I don’t plan on changing it anytime soon. I personally love to buy individual companies that are known to do well and continue to increase their dividends, but I also know these kinds of companies will not make one affluent overnight, as most are mature and no longer have much room to grow.
For example, Coca-Cola sits on my personal balance sheet and has done well, as I started my initial buy-in at $55 a piece, dollar-cost averaging down and up from $38 to the $60s.
Kenvue sits on the investment fund balance sheet but not on my personal balance sheet, as I have directed more attention towards the investment fund this year.
This is another business that won’t make an investor wealthy overnight, but it will add a cash printing position to a balance sheet as dividends continue to rise above inflation, and consumers continue to purchase Band-Aids, Aveeno lotion, Bengay for their aches, Neutrogena for face wash, and so on.
Since the investment fund is private and I don’t ever plan on pooling other investors’ money into it, I see it as eventually becoming a great source of income for my household over time.
So holding cash-rich, income-generating companies on the balance sheet, even if they’re not growth-driven but cash-driven, makes sense.
In the future, I would like to add some exposure to international companies. However, you shouldn’t put the cart before the horse. I am still learning, and as I continue to develop into the investor I aim to be, I know it’s not about avoiding mistakes altogether but about limiting them as much as possible.
Understanding that I am still learning and that initial analysis of companies and strategies can be proven wrong over time is crucial in order to adjust over time instead of going down with a hole-ridden ship.
It’s also why it’s been nice to have VOO on both the personal and investment fund balance sheets. Any growth coming from individual companies is just icing on the cake
When it comes to the private investment fund, I’m not as focused on immediate dividend income as I am on acquiring shares in businesses to be held on the balance sheet for the next 10 years or even longer.
With time, the dividends will accumulate nicely which will provide a decent income for my household and secure other investment assets outside the stock market if that is the route chosen, until then, cash will be reinvested back into the fund for growth.
The Broke College Student 
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