💸 How Passive Dividend Income Became My Other Stream of Financial Security

Hi real money tribe,

If you’ve been following my writing or listening to The Precious Metals Coach podcast, you already know I talk a lot about real money, real assets, and taking control of your financial future. Physical gold and silver are powerful tools for that and one of my key pillars — but they’re not the only ones I use.

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About five years ago, I realized something important: if I wanted and needed true financial security, safety and protection, and peace of mind, I couldn't rely on just my salary as my income stream. I needed to diversify to reduce income risk to protect myself and family.

And really — who wouldn’t want an extra $500, $1,000, $1,500 or more hitting their account every month? Imagine what you could do with that new and steady cash flow:

• Pay off debt faster.

• Buy more physical gold and silver.

• Reinvest it to grow your income snowball.

• Build your kids’ post-secondary fund.

• Or just have extra freedom to travel, enjoy life, and sleep better at night.

For me, I said to myself early on: "I need to earn an extra $1,000 per month" — and once I hit that, I wanted to earn enough to replace my income entirely. That big, clear goal kept me motivated and focused on building my own passive income machine step by step, month by month.

The Problem With My Old Style of Investing

I’ve been an investor since my early 20s thanks in large part to my dad who introduced it to me. Like many people, I started with growth stocks and mutual funds and spent my days hunting for the next “big fish” — that one stock or fund that would double or triple overnight and make me rich.

But reality was different. I spent way too much time glued to my screen — excited when the price went up, anxious when it went down, never sure when to buy or sell. And the truth is, I could only make money if I sold at a profit. Once I did, I had to start the hunt all over again.

Sometimes I’d buy in too late, at a high price, after reading articles, listening to office chatter, or trying to do my own research. More often than not, it just added risk and reduced my gains. It was stressful, draining, and rarely delivered the payoff I hoped for. Thinking back, I really had no clue or strategy of what I was doing and it was all hope and pray investing.

Discovering Dividend Income Investing Changed Everything

With my investing experience, I knew about dividends — but honestly, I always thought they were just for retirees or seniors. You know, people who needed a little income boost to help cover life’s bills in retirement. What I didn’t know — and what I only discovered more recently — is that this style of investing can be a powerful and more assured way to grow wealth in a more sensible, steady, and far less stressful way, no matter your age.

I realized I didn’t have to rely on just one way to make money. With income investing, I could get paid two ways:

✅ Regular dividend income, usually monthly.

✅ Capital gains, if the price goes up too.

It was like flipping a switch in my brain.

As I got older and not really progressing the way I had hoped for in my growth style investing, I began to see that time was passing — and I wasn’t building real wealth the way I wanted to. I tried the traditional approach — investing in balanced mutual funds or following the old 60/40 rule of 60% equities and 40% fixed income. But honestly, that just felt like treading water. Maybe I earned 6% a year — and when I factored in inflation, my real return was next to zero. I had enough of that!

What I realized — and what was missing from my old growth style — was that I needed to invest in a way that offered greater probability and confidence of reaching my goals. Not just a hope and pray method — but a plan I could trust would get me where I wanted to go, and that was to build my income and wealth consistently and safely and in a manner that I could easily do myself. That’s exactly what dividend investing has given me.

Suddenly, researching investments made sense. I didn’t have to guess anymore — I could look at the dividend yield, check its payout and price history, and know fairly accurately what kind of income to expect. No more hunches or blind bets.

Why I Sleep Better Now

Today, I’m far less stressed than I ever was when using growth investing. I rarely sell anything now — because I’ve built a solid portfolio of income-oriented investments that pay me regularly, month after month regardless if markets are up or down. It’s like having my own personal cash machine.

If prices dip, great — I buy more shares “on sale,” which means my future dividends grow even faster. If prices rise, I win too — my holdings are worth more and they still pay me income.

No more panic buying or selling. I’ve shifted my focus from trading to collecting and growing my income each month — and that extra income protects me no matter what the headlines say or politicians do.

The Risk Today of Relying on a Single Income

Here’s the thing: many people, including myself and my spouse at one point, relied solely on a single income — usually a salary. But life is unpredictable. Job loss, health issues, mandates, or other unexpected expenses can happen anytime, putting your financial stability and future at risk. Think your job is iron clad? Think again, it's not, trust me.

That’s why having multiple income streams is so important. An additional income source — like passive dividend investing — can act as a safety net, giving you more financial security and peace of mind. It’s not just about making more money (unless of course this is your goal and that's OK too!); it’s about protecting yourself and your family from whatever life might toss your way, and feeling like you are finally building something solid and moving in the right direction for a change. No more annual statements from your financial advisor which shows a loss for the year or a piddly 6% gain...you deserve way more than that and you can do it easily when you regain control of your finances. Trust me, stop outsourcing your finances to others and do it yourself.

Where I Started — And Where You Can Begin

I started with the usual blue-chip dividend payers:

• Canadian banks and life insurance companies which pay a steady dividend

• Energy companies like Suncor, Enbridge, Algonquin Power which pay a bot more and often grow thier dividends

• Reliable real estate investnment trusts and utilities like RioCan, Fortis, Telus, Hydro One

These paid consistent dividend yields — often between 4% to 8%, not bad — but pretty quickly I wondered if I could do better. So I discovered high-yield income ETFs from well-known providers in Canada like BMO, Quadravest, Hamilton, Evolve, Purpose, Harvest, GlobalX, etc. which paid higher dividends often up to 20%, and then others in the U.S. like YieldMax, Roundhill, Defiance, Kurv, and REX Shares which have massive yields anywhere between 30% to 100%! Yes, that's correct, you can achieve big dividend yields and I think you don't need to settle for something like RBC at 5%. It is said that earning 10% each year from the S&P500 or TSX is the average - don't settle for average, you can do better, way better with some effort and research.

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The best part? These funds I just mentioned are easily available to everyone through DIY online brokerages like Wealthsimple or Questrade here in Canada. Opening an account is fast and simple — and once you do, you can buy these investments and start seeing dividends arrive in your account regularly, often monthly or even weekly. It's that simple.

The Mindset Shift: Income Over Price, But Price Still Matters

Dividend investing requires a different mindset. Unlike growth investing which focuses solely on the price of a stock or funds, with dividend investing the primary focus is on the income your investments generate. That steady dividend stream becomes your financial anchor — providing peace of mind regardless of market volatility.

At the same time, you remain mindful of price to continue making smart decisions — like buying more shares when prices dip (“on sale”) or trimming positions when valuations are high. But unlike growth investing, price is no longer the main driver of your emotions or decisions and I found I was not trading nearly as often which really simplified things and made my life way easier with less anxiety.

This mindset shift helps reduce stress because:

• You’re less concerned about daily market noise or trying to time the market

• Your goal stays clear: grow and collect reliable income

• Dips become buying opportunities to increase future income

• You still benefit from capital gains when prices rise

In short, dividend investing lets you build wealth with confidence, calm, and clarity.

Growth Stocks vs Income Investing — It’s Not Either-Or

Many people prefer the growth investing style because they dream of making it big by investing in exciting tech stocks or momentum plays like Tesla, Palantir, or Nvidia. These companies capture the imagination with their rapid innovation and explosive price gains. However, chasing these big wins often comes with higher volatility and emotional rollercoasters, and it can be stressful trying to time the market or pick the right winner.

Dividend investing offers a different approach—focusing on steady, reliable income and compounding wealth over time—which can be far less stressful and more predictable, while still allowing for growth through capital appreciation.

Plus, there are income-oriented funds that hold these very same high-growth stocks and produce regular dividends from them, while still offering potential for capital appreciation. It’s like getting a double win—earning steady income and enjoying the growth story.

📈 Real Growth Examples — What’s Possible Over Time

Here’s a quick summary to show how starting with a modest amount and adding regular contributions can really pay off — especially when combined with strong yields and reinvestment over 20 years:

Starting Amount	Monthly Contribution	Annual Dividend Yield	Portfolio Value After 20 Years	Annual Dividend Income After 20 Years
$2,000	$250	13%	~$450,000	~$58,500
$5,000	$500	20%	~$3,300,000	~$660,000

Whether you start small or larger, the key is consistency, reinvesting dividends, and giving your investments time to grow. Over the years, that passive income can change your life.

Teach Your Kids Early — Time Is Their Greatest Advantage!

The power of dividend investing compounds most strongly over time. The earlier you start, the more your money grows — so even small amounts can turn into significant wealth decades later.

For example, imagine a 20-year-old just starting out and who starts with zero dollars but commits to investing $300 per month in dividend-paying funds like the Harvest Diversified Monthly Income Fund (HDIF) or Hamilton Canadian Enhanced Multi-sector Covered Call Fund or (HDIV) , which have historically offered average annual dividend yields around 15%. Add to that an assumed average capital gain of about 10% annually, with all dividends reinvested. Looking for more, check out the Harvest Diversifed High Income Shares ETF which invests in a basket of big name U.S. tech stocks such as Coinbase, Microstrategy, Tesla, Palantir, etc., and is paying a 25% dividend right now.

For that 20 year old, over 30 years this disciplined dividend investing approach could grow their portfolio to well over $2 million, with annual dividend income exceeding $300,000 — providing a substantial and growing passive income stream. How would you like to tell your child, “How would you like to have approximately $2 million in just thirty years?” This is about as close to a guaranteed strategy as I can find, given the power of time, discipline, and compounding returns.

That’s why teaching kids or young adults about passive income investing early is one of the best financial gifts you can give them. With as little as $50 or $100 a month, they’ll learn:

• How money grows with compound interest, dividends, and capital gains

• Why consistency and patience matter

• How to build real wealth that provides freedom

It also sets them up with a healthy mindset: less anxiety, less gambling — more confidence and calm.

🌟 It’s Never Too Late to Start

This strategy isn’t just for young people. I only started seriously with dividend investing about five years ago, and it has completely changed my life. It’s created an additional revenue stream far beyond my initial expectations — and it’s been easier and quicker than I ever imagined. Whether you’re 20 or 50, it’s never too late to build passive income through dividend investing. The key is starting, staying consistent, and letting time and compounding work for you.

How I Make It Work

For me, I like to keep things simple and consistent to gain momentum and compounding by:

• Reinvesting my dividends to create a "snowball" effect

• Diversifying across index funds, different sectors and even countries to reduce risk and boost income

• Keeping an eye on the price of my investments to ensure they are also capital appreciating on top of their dividends

And here’s something new: some high-income funds now pay every week, not just monthly. Imagine a personal payday every Friday — it makes the journey feel incredibly rewarding when you get a notification on your phone when a dividend payment hits my accoount - "ding!".

✅ My Bottom Line

Regular dividends give me real added financial flexibility, income diversity, and peace of mind.

Many of my closest friends know that I’m a big believer in physical precious metals for inflation protection and real wealth security. But relying solely on a single income — whether it’s from a salary or your spouse — leaves you exposed to life’s uncertainties. Having multiple income streams, like passive income from dividends, adds a crucial layer of protection and freedom for my family.

With pensions becoming more at risk and many companies no longer offering them, building your own personal pension plan through dividend investing can put you in the driver’s seat. It could give you more options and flexibility for your retirement years or whenever — and if you do it inside a TFSA, your income grows 100% tax-free!

The biggest driver of results? Time. The sooner you start, the more your dividends compound. It’s something anyone can do — at any age. More income streams mean more choices — and more freedom.

Looking for more info? Ready to get started?

The best place to start is with a consultation to see if passive income investing may be right for you and to get some real ansers to your most burning questiions.

📩 Email me at preciousmetalscoach@proton.me

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To your financial health 🥂,

David

The Precious Metals Coach + Money Mindset Mentor

"Real Money For We The People"

⚠️ Disclaimer

This blog reflects my personal experience and perspective and is not intended as financial advice. Always do your own research and consult a licensed financial advisor before making investment decisions.