A 50-year-old Korean dividend investor known as 'Pyeong-on' generates 5 million won in monthly dividends after transforming his strategy following the March 20, 2020 market crash. The recently retired investor holds over 4 billion won in assets, producing 60 million won annually in dividend income. His shift to dividend-focused investing enabled him to maintain positions during a subsequent 33% Nasdaq decline.
The investor's total cash flow, including real estate rental income, exceeds the level of an office worker earning 100 million won annually. He shared his investment journey through the YouTube channel 'Single FIRE,' which provides economic and investment information.
Investor Transforms Strategy After 2020 Market Exit
On March 20, 2020, when markets hit bottom during the COVID-19 shock, Pyeong-on sold all his stock holdings. The market rebounded shortly after his exit, forcing him to repurchase shares at higher prices. Two years later, when the Nasdaq index fell approximately 33%, his behavior changed completely. Instead of selling, he continued buying stocks.
"Because of the fun of increasing dividends every month, I didn't even notice the decline and spent the downturn unaware," he stated. "I clearly realized that dividends are the power to endure declines."
Portfolio Combines 24 Stocks Across Growth and Dividend Categories
The investor's stock portfolio consists of 24 holdings. Growth stocks account for approximately 34% of the portfolio, while dividend stocks and bonds comprise approximately 66%. Large-cap growth stocks including Apple, Microsoft, Alphabet, Amazon, and TSMC provide upside participation during bull markets. Dividend assets including SCHD, JEPQ, DIVO, and Realty Income generate cash flow.
Pyeong-on maintains exposure to both growth and dividend stocks rather than concentrating in one category. Holding only dividend stocks can create feelings of missing out during bull markets and increase the likelihood of abandoning the dividend strategy. Conversely, focusing solely on growth stocks increases the risk of being unable to withstand losses during crashes and exiting the market.
Three Investment Principles Guide Portfolio Management
The investor's first principle is diversification between growth and dividend stocks. Growth stocks capture gains during bull markets while dividend stocks reduce portfolio drawdowns during declines.
The second principle is systematic dollar-cost averaging. The core approach involves consistent accumulation regardless of whether markets are rising or falling.
The third principle is dividend reinvestment. Pyeong-on has reinvested all received dividends back into stocks rather than using them for living expenses. While reinvestment amounts were initially small, the compounding effect grew as the number of shares increased and dividends expanded.
Investor Cautions Against Leveraged ETF Concentration
Pyeong-on emphasized caution regarding single-stock leveraged ETF investments and single-stock covered call ETFs offering high yields. He specifically compared leveraged products to hot peppers.
"Using leverage moderately and in small amounts is fine, but going all-in trying to change your life with it is like eating hot peppers for every meal," he stated. "If you do it long-term, you'll be taken straight to the hospital."
Following his recent retirement, the investor lost his salary as a cash flow source. However, he does not plan to significantly change his investment strategy. While he previously reinvested all dividends, he now intends to use a portion for living expenses while appropriately managing the reinvestment amount.
"I think investing is about creating a system that generates cash that never runs dry for a lifetime," Pyeong-on said. "The daily reality is tough, but if you continue investing by steadily accumulating, I believe it will definitely take you to economic freedom. I encourage you to stay strong."
FAQ
What dividend income does the investor receive monthly?
The investor receives 5 million won in monthly dividends, totaling approximately 60 million won annually from his stock portfolio.
What happened when the investor sold stocks on March 20, 2020?
The investor sold all his stock holdings during the COVID-19 market crash on March 20, 2020. The market rebounded shortly after, forcing him to repurchase shares at higher prices.
How is the investor's portfolio structured?
The portfolio consists of 24 stocks with approximately 34% allocated to growth stocks and 66% to dividend stocks and bonds, including holdings in Apple, Microsoft, Alphabet, Amazon, TSMC, SCHD, JEPQ, DIVO, and Realty Income.
