Tuesday, October 6, 2026

Why Financial Independence Demands Both Defense and Offense

As I'm writing this blog post, it's currently Tuesday, October 6th, 2026. The temperature here in Central Wisconsin is poised to reach a high of 74 degrees Fahrenheit later today. Thus, I plan on spending a bit of time outside.

With that aside, I wanted to shift the focus of the blog a bit this week to the mechanics of wealth building and achieving financial independence (e.g., total passive income that meets or exceeds total expenses).

In the traditional personal finance playbook, we're often told to pick a lane. Play strict defense: Clip coupons, obsess over every penny of expense creep, and hunker down. Or, play pure offense: Hustle harder, chase higher active income, and let compounding take care of the rest.

The problem? In a macroeconomic environment defined by persistent inflation, creeping overhead (e.g., surging healthcare costs, rising groceries, etc.), and systemic friction, playing only one side of the board is a losing strategy. To truly build a bulletproof financial foundation, both elements must be mastered simultaneously.

1. The Fortress (The Defensive Moat)

Defense is about locking down your baseline so that external shocks can't penetrate your perimeter. For individual investors, this means keeping fixed costs lean, eliminating toxic liabilities, and ensuring that basic survival expenses are protected by high savings rates and tangible assets.

This will look at least a little different for everyone, but the goal is to lower your break-even point so drastically that you become unfazed by economic turbulence. The sobering reality, however, is that defense alone is a slow grind. If you only focus on cutting expenses, you'll quickly reach a mathematical floor. You typically can't out-save an aggressively inflating baseline forever.

Take my personal finances for instance. The vast majority of my spending (80%+) comes from housing, groceries, healthcare, and modest transportation/car insurance expenses. Thus, these categories are optimized to a point that's well below my means. This allows me to routinely save and invest over 70% of my net income.

2. The Engine (The Offensive Push)

Of course, a high savings rate is made much easier with a higher income once you have your expenses locked down. This is why offense matters so much.

Wealth acceleration happens here. Offense is about expanding your earning capacity. This could be done through leveraging specialized intellectual capital to scale income, seeking out yield, and turning active skills into scalable revenue streams.

The goal is to push your income velocity as far ahead of the broader economic inflation curve as possible. The reality is that pure offense without a defensive foundation in place leaves you vulnerable to lifestyle creep and systemic shocks.

3. The Synthesis: The FI Playbook

When you combine a locked-down defensive baseline with an aggressive, scaling offensive engine, something powerful happens: Asymmetrical compounding.

Every dollar added to your income widens the gap between your earnings and fixed expenses. When macro costs rise (like my expected 20%+ hike in my catastrophic health insurance plan premium for next year), you don't flinch all that much. You simply adjust your output slightly, leaving the friction far behind where the median consumer gets squeezed.

Concluding Thoughts:

True financial sovereignty is about building an impenetrable fortress while also launching strategic raids from it. If you want to pull away from the pack, stop choosing between defense and offense. Master both, and let the system work against itself.

Discussion:

When building toward financial independence, where do you find yourself leaning more naturally: Locking down your defensive baseline (cutting expenses and optimizing fixed costs) or pushing the offensive engine (scaling active income)?

I appreciate your readership and look forward to your comments below!

Tuesday, September 29, 2026

September 2026 Dividend Income

As I'm writing this blog post, it's currently Monday, September 28th. The temperature here in Central Wisconsin is set to reach a high of 74 degrees Fahrenheit with a sunny forecast. That's why I'll be spending some time outside later today!

With that out of the way, I'll be quickly outlining my net dividend income for September 2026. Without further ado, let's jump into it!

Net Dividends Approached $800

In September 2026, I received $790.59 in net dividends (including ADR fees for BAM). Sequentially, this grew by 5.3% over the $750.91 in net dividends collected in June 2026.

Compared to the $623.20 in net dividends received in September 2025, that's equivalent to a 26.9% growth rate over the year-ago period.

Within my Robinhood account (formerly Charles Schwab), I collected $435.30 in net dividends from 37 companies. First-time dividend payments from Genpact Limited (G) and Hamilton Lane Incorporated (HLNE) more than offset the timing of NVIDIA Corporation's (NVDA) dividend (payable on Oct. 1)

I also received $170.76 in net dividends from 15 companies in my Robinhood IRA portfolio. The timing of NVDA's dividend reduced my company count by one versus June 2026.

Within my Capital Income Builder (CAIBX) mutual fund in a retirement account from my employer out of college, I collected $105.89 in net dividends.

I also received $57.70 in net dividends from seven companies in my Fidelity solo 401k portfolio.

Finally, I collected $20.94 in net dividends from seven companies within my Webull account.

Concluding Thoughts:

The dividend growth portfolio is chugging along. By God's grace, as I keep saving and investing in the months to come, I think that net dividend growth will remain in the upper-20% range (28.3% YTD) due to compounding.

Discussion:

How was your September 2026 for dividend income?

Did you receive any first-time dividends in the month as I did with G and HLNE?

Thanks for reading and please feel free to comment below!

Tuesday, September 22, 2026

September 2026 Stock Purchases

As I'm writing this blog post, it's currently Monday, September 21st, 2026. Tomorrow is the first official day of fall, but it looks like it's already unofficially here. The temperature here in Central Wisconsin is only going to reach a high of 63 degrees Fahrenheit later today.

With that aside, I will be quickly highlighting my stock purchases for September 2026. Let's jump into it!

Stock Purchase #1: Amazon.com, Inc. (AMZN)

I purchased an additional three shares of Amazon.com at an average cost of $254.00 a share. Curious readers can check out my investment thesis for AMZN in my September 2026 Stock Watch List blog post.

Stock Purchase #2: Broadcom (AVGO)

My next purchase was three more shares of Broadcom at an average price per share of $369.53. Interested readers can find my investment thesis for AVGO in my October 2026 Stock Watch List blog post. This lifted my net annual forward dividends by $7.80, which equates to a 0.70% net dividend yield.

Stock Purchase #3: British American Tobacco (BTI)

I also added another 21 shares of British American Tobacco at an average cost of $56.13 a share. That marked the first time I added to BTI since April 2025. This boosted my net annual forward dividends by $68.04, which is equivalent to a 5.77% net dividend yield.

Stock Purchase #4: Hamilton Lane Incorporated (HLNE)

My next purchase was 10 more shares of Hamilton Lane at an average price per share of $103.38. Readers can find my investment thesis in my September 2026 Stock Watch List blog post linked earlier. That transaction increased my net annual forward dividends by $24.00, which works out to be a 2.32% net dividend yield.

Stock Purchase #5: Intuit (INTU)

I also added another two shares of Intuit at an average cost of $344.58 a share. My investment thesis is unchanged since it last appeared on my May 2026 Stock Watch List. This raised my net annual forward dividends by $11.04, which equates to a 1.60% net dividend yield.

Stock Purchase #6: UnitedHealth Group Incorporated (UNH)

My next purchase was two more shares of UnitedHealth Group at an average price per share of $395.50. The thesis is basically the same as when it was featured in my April 2026 Stock Watch List. The transaction upped my net annual forward dividends by $18.56, which is equivalent to a 2.35% net dividend yield.

Concluding Thoughts:

In September 2026, I deployed $5,669.07 in net capital (including $105.89 in net dividends from my CAIBX mutual fund holding in my former employer-sponsored account). That added $132.53 in net annual forward dividends, which works out to be a 2.34% net dividend yield.

My net annual forward dividends have grown by $30.718 in September 2026 from dividend increases as well. Along with lower revisions in ADR dividends from recent strengthening in the USD, this lifted my net annual forward dividends from around $8,175 heading into the month to nearly $8,325 moving into October 2026.

Discussion:

How was your capital deployment for September 2026?

Did you start any new positions during the month?

Thanks for reading and please feel free to comment below!

Tuesday, September 15, 2026

Expected Dividend Increases for October 2026

As I'm writing this blog post, it's currently Monday, September 14th, 2026. The temperature here in Central Wisconsin is set to reach a high of just 66 degrees Fahrenheit with a rainy forecast. Needless to say, I probably won't be going outside today.

With that aside, I'll be looking at the dividend announcements in September 2026. I will also be looking ahead to the payout raises that I'm anticipating for October 2026. Let's dig into it!

Actual Dividend Increases for September 2026

Dividend Increase #1: Realty Income (O)

Realty Income announced a 0.2% increase in its monthly dividend per share to $0.2715. This fell short of my expectation for a 1.5% raise in its monthly dividend per share to $0.2750 outlined in this series' previous blog post. Still, I do expect the customary big raise to be announced at some point this year, along with the several smaller raises.

Across my 153 shares of O, my net annual forward dividends edged $0.918 higher due to this dividend announcement.

Dividend Increase #2: U.S. Bancorp (USB)

U.S. Bancorp declared a 3.9% raise in its quarterly dividend per share to $0.54. My net annual forward dividends grew by $2.08 across my 26 shares from this dividend declaration.

Dividend Increase #3: VICI Properties (VICI)

VICI Properties announced a 2.2% increase in its quarterly dividend per share to $0.46. This was below my forecast of a 3.9% raise to $0.4675.

Across my 180 shares of VICI, my net annual forward dividends surged $7.20 higher due to this dividend announcement.

Pending Dividend Increase #1: Microsoft (MSFT)

Microsoft hasn't yet announced its next dividend, either. However, I remain confident that it will raise the payout by 9.9% to $1.00.

Across my 26 shares of MSFT, my net annual forward dividends would surge higher by $9.36 due to such a dividend announcement.

UPDATE: MSFT announced a 7.7% raise in its quarterly dividend per share to $0.98. My net annual forward dividends grew by $7.28 across my 26 shares of MSFT.

Pending Dividend Increase #2: Philip Morris International (PM)

Philip Morris International has yet to declare its next dividend. I'm sticking with my expectation of an 8.2% raise in the quarterly dividend per share to $1.59.

My net annual forward dividends would rise by $8.64 across my 18 shares of PM from such a dividend declaration.

UPDATE: PM declared an 8.8% hike in its quarterly dividend per share to $1.60. This raised my net annual forward dividends by $9.36 across my 18 shares.

Bonus Dividend Increase: McDonald's (MCD)

A few weeks earlier than I anticipated, McDonald's upped its quarterly dividend per share by 3.8% to $1.93. While this was less than the 5.9% increase to $1.97, the upside was that MCD is now a Dividend King.

Across my nine shares of MCD, my net annual forward dividends grew by $2.52 from this announcement.

Expected Dividend Increases for October 2026

Expected Dividend Increase #1: AbbVie (ABBV)

The first dividend raise that I'm anticipating for October 2026 will come from AbbVie. I believe that ABBV will announce a 5.2% lift in its quarterly dividend per share to $1.82.

Across my 14 shares of ABBV, my net annual forward dividends would rise by $5.04 due to such a dividend announcement.

Expected Dividend Increase #2: Agree Realty (ADC)

The next dividend increase that I'm expecting for next month will be from Agree Realty. My guess is that it will declare a 1.9% increase in its monthly dividend per share to $0.272.

My net annual forward dividends would edge $1.20 higher across my 20 shares of ADC from such a dividend declaration.

Expected Dividend Increase #3: American Electric Power (AEP)

The third dividend raise that I'm predicting for October 2026 will come from American Electric Power. My best guess is that AEP will announce a 2.1% increase in its quarterly dividend per share to $0.97.

Across my 15 shares of AEP, my net annual forward dividends would inch up by $1.20 due to such a dividend announcement.

Expected Dividend Increase #4: A.O. Smith (AOS)

The next dividend increase that I'm anticipating for next month will be from A.O. Smith. I believe that AOS will declare a 5.6% raise in its quarterly dividend per share to $0.38.

My net annual forward dividends would increase by $0.96 across my 12 shares of AOS from such a dividend declaration.

Expected Distribution Increase #5: Energy Transfer (ET)

The next distribution bump that I'm expecting for October 2026 will come from Energy Transfer. My guess is that ET will announce a 0.7% increase in its quarterly distribution per unit to $0.3425.

Across my 207 units of ET, my net annual forward distributions would rise by $2.07 due to such a dividend announcement.

Expected Dividend Increase #6: Lockheed Martin (LMT)

The next dividend raise that I'm predicting for next month will be from Lockheed Martin. My best guess is that LMT will declare a 5.2% increase in its quarterly dividend per share to $3.63.

My net annual forward dividends would grow by $2.88 across my four shares of LMT from such a dividend declaration.

Expected Distribution Increase #7: MPLX LP (MPLX)

The seventh distribution boost that I'm expecting for next month will be from MPLX LP. My guess is that MPLX will declare a 12% lift in its quarterly distribution per unit to $1.206.

My net annual forward distributions would climb higher by $36.26 across my 70 shares of MPLX from such a distribution declaration.

Expected Dividend Increase #8: Visa (V)

The ninth dividend raise that I'm predicting for October 2026 will come from Visa. My best guess is that V will announce a 13.4% hike in its quarterly dividend per share to $0.76.

Across my 12 shares of V, my net annual forward dividends would surge $4.32 due to such a dividend announcement.

Pending Dividend Increase #1: Accenture plc (ACN)

Accenture plc has yet to declare a hike in its payout. Still, I believe that ACN will boost the quarterly dividend per share by 9.8% to $1.79. I shifted this to October due to the Q4 2026 earnings report falling on that day.

My net annual forward dividends would rise by $17.92 across my 28 shares of ACN from such a dividend declaration.

Concluding Thoughts:

My net annual forward dividends jumped by $30.718 in September 2026 from my six dividend raises. That would equate to investing $1,023.93 at a 3% net dividend yield.

If my nine raises for October 2026 play out as anticipated, my net annual forward dividends would soar by $71.85. This would be equivalent to investing $2,395.00 at a 3% net dividend yield.

Discussion:

How has your September 2026 been for dividend boosts?

Are you expecting any first-time dividend hikes like I expect with ACN next month?

I appreciate your readership and welcome your comments below!