The 401k isn't quite the dividend engine that I had envisioned. There are only about a dozen or so funds to choose from, so when I first set it up, I had a fairly even spread across all of them. Diversification and balance seemed like the way to go. After all, this is the 401k we're talking about. It's heavy stuff. You want it to be sturdy and resilient so that your golden years can truly shine.
With dividends being the new name of the game, I decided it was time to tweak things a bit. There are quite a few funds that don't pay dividends, or at least show no evidence of it. As such, I decided to skim a little from the money that I was putting into a couple of those non-dividend funds and redirect it towards Publix stock.
It may seem counter-intuitive, moving from broader funds to a single company stock, but I think this is going to work out well in the long term. Not only does that help the company, but it gets me more shares, and subsequently, more dividend income. In addition, the dividends from the shares in the 401k actually do reinvest, so that will spur even more growth going forward. I was able to more than double the amount I was directing towards the stock, so it'll be interesting to see how that ends up working out over the course of the next couple of years.
On the off chance this doesn't work, and the rate of return isn't as good, I can always change it back or do another re-shuffle.
The cool thing about this is that it's still the same amount of money (sort of, we'll talk about that in the December dividend post,) but I'll still see a boost in income. Yeah, I can't touch it for another 20+ years, but it'll get that snowball rolling faster in the meantime.
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