Posted by My dividend income so far in 2026 is averaging $4,000 per month. Although 3/4 of that is in a tax deferred account. I have taken a total of $1,000 in distributions over the past few months but have decided to stop for the remainder of 2026. My dividend income has been increasing but my investments have not been doing as well as I had hoped. I blame it on several factors. Number one is inflation and number two is interest rates. I made a couple investments in real estate and home builder ETFs that have lost money as a result. The new “hand-picked” Trump Fed Chairman was supposed to lower rates. Well, that didn’t happen. Instead, inflation is getting worse and interest rates could go even higher. I’ve been adding to those positions knowing that eventually rates will come down.
I also invested in two bond ETFs that have dropped in value. I felt that I had too much cash sitting in money market funds. One bond ETF I am reinvesting dividends and the other is in a taxable account and dividends are going toward my living expenses. If the dividend goes much higher, I may start reinvesting in that one as well. Otherwise, investment growth has been kind of stagnant, unless you are heavily invested in AI related stocks. My angle on that is to invest in utilities and energy infrastructure stocks and ETFs. So far, that play has not been doing as well as the memory, data storage, and chip stocks. There is a growing negative sentiment toward data centers which has put pressure and my energy infrastructure approach.
Another ETF that has not met my expectations is SHLD which had lost 18% in the last six months. Global X Defense Tech ETF provides exposure to technologies that are core to the future of the global defense sector. With two global conflicts going on it seemed like a sure thing to invest in SHLD. Analysts note that SHLD sold off harder than pure-play U.S. aerospace and defense peers (like ITA or XAR) after underlying holdings reached expensive valuations earlier in the cycle. I invested in SHLD specifically because it didn’t have commercial airline mfg. companies. I still have hope that a defense restocking cycle will help SHLD recover.
An unexpected windfall is always nice, but when it is the result of a family member’s passing, it is not always a good thing. The amount of time and work it takes to settle someone’s estate is exhausting. There is a home to sell, investment accounts to disperse, and insurance companies to notify. It makes you think about your own estate and what will become of it after you pass. I have learned a lot about the process, but it is ongoing with several more hurdles to clear before things get back to normal. In the back of my mind are all of the things that will change for me in 2027. Finding AHC healthcare, then changing over to Medicare and shopping for supplemental insurance. Applying for Social Security and getting new glasses before my driver’s license renewal date. And dealing with all of the other unexpected things that will happen in the year ahead.