The Average Joe Investor

The Retirement Income Plan Most People Never Build
The Average Joe Investor What's New

The Retirement Income Plan Most People Never Build

Dividend investing can provide passive income and a measure of stability in your portfolio. But be careful: companies can trim or slash dividend payments at any time. Look for consistent and increasing dividends, as well as a strong history of financial resilience. Avoid chasing high yields, which can be a warning sign of trouble.

Read More
Retirement Income Test: $25K Per Year From a $500,000 Portfolio
The Average Joe Investor What's New

Retirement Income Test: $25K Per Year From a $500,000 Portfolio

Dividend investing offers the potential to generate income and grow a portfolio with less volatility than many other types of investments. However, dividends are not guaranteed and companies can cut or stop paying them in the event of financial distress.

Read More
My 7 DTE SPX Options Strategy Was Good. Splitting It Was Better.
The Average Joe Investor What's New

My 7 DTE SPX Options Strategy Was Good. Splitting It Was Better.

Passive income investing dividend offers investors a steady stream of cash, complementing additional potential returns from share price growth. But investors must assess a company’s financial health and dividend history carefully. One key metric is the dividend payout ratio, which shows how much of a company’s earnings goes toward the dividend. Consistently low dividend payout […]

Read More
The Number That Reveals Your Real Risk Tolerance
The Average Joe Investor What's New

The Number That Reveals Your Real Risk Tolerance

Build a reliable stream of passive income with dividend investing. Learn about a variety of strategies, from chasing high yields to focusing on steady dividend growth. Avoid yields that are too high, which may signal a company is paying out more than it’s earning. Favor companies with healthy free cash flow and low debt levels.

Read More
Are There SPX Income Strategies That Outperformed the S&P 500? (Backtested)
The Average Joe Investor What's New

Are There SPX Income Strategies That Outperformed the S&P 500? (Backtested)

Dividend investing is a powerful strategy for passive income. However, dividend investors must avoid focusing solely on yield. Yield is a backward-looking statistic that can hide important information. Moreover, high yields can indicate a lack of earnings growth or financial distress (dividend cuts, suspensions, or even revocation). To evaluate a stock’s dividend sustainability, we recommend […]

Read More
Can You Create Monthly Income from Selling SPX Options?
The Average Joe Investor What's New

Can You Create Monthly Income from Selling SPX Options?

Dividend investing is one way to add passive income to your portfolio. The best dividend stocks focus on stability and financial health. Companies that consistently increase their dividends signal resilience, but investors should never prioritize yield at the expense of long-term total returns.

Read More
Selling SPX Options: Does a Higher Win Rate Beat a Bigger Credit?
The Average Joe Investor What's New

Selling SPX Options: Does a Higher Win Rate Beat a Bigger Credit?

Dividend investing seeks steady, growing income from companies that pay them. It requires disciplined selection, since dividends are not guaranteed and can be reduced or eliminated in times of financial distress. Look for consistency in dividend payments, a record of increasing them and low debt levels. Evaluate your time horizon and risk tolerance as well.

Read More
SPX 7 DTE Put Credit Spreads: A Framework for Growth or Retirement Income
The Average Joe Investor What's New

SPX 7 DTE Put Credit Spreads: A Framework for Growth or Retirement Income

A passive income investing dividend strategy can be an attractive option for many investors. However, it requires discipline and consistent investing over a long period of time to achieve results. Investors in dividend-paying stocks often reinvest their dividend payments, increasing their investment return over time. However, companies can halt or reduce their dividend payouts at […]

Read More
I Tested 135 High-Yield ETFs in 25,000 Portfolios
The Average Joe Investor What's New

I Tested 135 High-Yield ETFs in 25,000 Portfolios

Passive income investing dividend Dividends from stocks (and exchange-traded funds) are taxable in taxable brokerage accounts. When reinvested, they compound over time. A company’s history of paying and increasing dividends signals financial resilience. But high yields may indicate that the company hasn’t enough money to invest in growth.

Read More
Should You Sell SPX Put Credit Spreads When Markets Fall?!
The Average Joe Investor What's New

Should You Sell SPX Put Credit Spreads When Markets Fall?!

Investing in dividend-paying stocks offers stable income and potential capital gains. But the right approach depends on your financial goals, risk tolerance and investment time horizon. Paying attention to dividend yield alone can lead to risky “dividend traps.” Instead, focus on payout ratio and growth to avoid companies at risk of cutting their payments.

Read More