Bullstory Research July 27, 2026
Dividend Growth Stock Portfolio: Monthly 100How to Build Passive Income of Ten Thousand Won
Key takeaways
Monthly 100To earn dividend income of Ten Thousand Won, an approximate weighted average dividend yield of 2.5% requires about 4.8billion won of principal. If you invest Ten Thousand Won each month and reinvest dividends, you can reach it in about 100years. The selection criteria are 15years or more of dividend increases, a dividend payout ratio of 10% or less, and a 60year dividend growth rate of 5% or more.7.
Monthly 100ten thousand won of dividend income feels like a vague dream. But once specific numbers and stock-selection criteria come into view, the story changes. Depending on whether you start now or not, the time it takes to reach that goal can differ by several years.
Why dividend growth investing is different from simply chasing high dividends
Dividend growth investing is not a strategy for buying stocks with a high dividend yield right now. It is a strategy for selecting companies that have steadily raised their dividends every year.
Continuously raising dividends means the company is actually increasing its profits and has the will to return them to shareholders. As a result, a structure is created in which capital gains and dividend income can be earned at the same time.
Three criteria for choosing stocks
There are three numbers to check when choosing a good dividend growth stock.
- Consecutive years of dividend increases: at least 10 years. 25Companies that have raised dividends for at least these many consecutive years are called “Dividend Aristocrats.”
- Dividend payout ratio: the ratio of net income paid out as dividends (payout ratio). 60% or less is considered stable, and if this figure is too high, there is a risk of cutting dividends even if earnings decline only slightly.
- 5-year dividend growth rate: the annual average of 7% or more is the target benchmark. If growth is 7%, the dividend after 10 years becomes 2 times the current amount.
Portfolio construction example
| Category | Stock | Dividend yield | Notes |
|---|---|---|---|
| Core (60%) | Microsoft (MSFT) | 0.8% | 5-year dividend growth rate 10.3% |
| Core (60%) | Johnson & Johnson (JNJ) | 3.2% | 62 consecutive years of dividend increases |
| Core (60%) | Procter & Gamble (PG) | 2.5% | 68 consecutive years of dividend increases |
| Core (60%) | Apple (AAPL) | 0.6% | 12 consecutive years of dividend increases |
| Growth (25%) | Broadcom (AVGO) | 1.2% | 5-year dividend growth rate 15.8% |
| Growth (25%) | Texas Instruments (TXN) | 3.0% | 20 consecutive years of dividend increases |
| High yield (15%) | Realty Income (O) | 5.1% | monthly dividend payments |
| High yield (15%) | Enterprise Products (EPD) | 7.2% | 25 consecutive years of dividend increases |
Core positions are companies that have raised dividends over a long period, even if their dividend yield looks low. High-yield positions serve to supplement cash flow right now.
How long it actually takes to reach 100 ten thousand won per month
The portfolio above has an approximate weighted average dividend yield of 2.5%. To receive annual 1,200 ten thousand won (monthly 100 ten thousand won) only through dividends, you need about 4 hundred million 8,000 ten thousand won in principal.
You do not need to have that money from the start. If you invest100 every month and reinvest all the dividends you receive, you can reach your goal in about 15 years. If you add dividend growth as well, this period becomes even shorter.
In the end, the key to this strategy is not stock selection, but not stopping reinvestment.
Frequently asked questions
Monthly 100When targeting dividend income of Ten Thousand Won, what is the total investment principal needed?
If a weighted average dividend yield of 2.5% is assumed, the principal needed for the target dividend is about 4billion 8,000ten thousand won.
What is the first priority when a beginner starts building a dividend growth stock portfolio?
First check the number of consecutive years of dividend increases. At least 10 years, and a dividend payout ratio of 60% or less is stable. 5 years of dividend growth rate, an annual average of 7% or more is favorable.
What are the key indicators to look at when choosing a company whose dividends increase every year?
Check the number of consecutive years of dividend increases, the dividend payout ratio, and the 5 years of dividend growth rate. These indicators show the sustainability of dividends and the speed of their expansion.