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A real, self-directed dividend experiment · run on Fidelity

The Drip Fund

Every dividend reinvests. More shares, more dividends, more shares. Slow, steady, relentless compounding. Water wears down stone.

$21,963 Portfolio value
$1,191/yr Est. dividend income
13 Positions held
+19.2% 2025 return(self-managed)
~$100/mo Added monthly(when I remember)

Snapshot as of June 27, 2026 · prices as of this snapshot · live off

Why this exists

Turning a tiny seed into something real.

I started The Drip Fund with a small stake — somewhere around $5,000, honestly I don't remember the exact number — and I feed it maybe $100 a month when I remember to, for one reason: to find out, with real money in an account I can actually log into, whether the slow magic of dividend reinvestment truly works. Not in a spreadsheet. For real.

Let me be clear about one thing up front: this isn't my retirement plan, and it isn't my only investment. The serious, boring heavy-lifting happens elsewhere — a 401(k) and a Roth IRA, where it belongs. The Drip Fund is the sandbox: a small pot of real money I play with out in the open, on purpose, just to illustrate the point and show anyone who'll look how powerful this quiet little engine really is.

Here's the beautiful part. Every dividend these holdings pay never touches my pocket — it instantly buys more shares. Those shares pay their own dividends, which buy more shares again. It compounds quietly in the background while I sleep, while I work, while I forget it even exists. Water wearing down stone.

And this is the part that gets me: the dollars in here are modest, but the engine is the exact same one that builds serious wealth. If these were bigger numbers — or if I'd simply started at eighteen instead of in my fifties — that same machine, handed thirty or forty years, doesn't just supplement a retirement. It lets you walk away from work early and never look back. This little account is a proof of concept for a very big idea.

If you're young, this is the whole message: start now. Not “once I have money” — now, with whatever you've got, even ten dollars a week. Time is the single ingredient you can never buy more of, and it's the one that matters most here. A dollar invested at 18 does work a dollar invested at 50 simply cannot. The best day to plant this tree was years ago. The second best day is today. Go open the account.

One account, one job

A taxable brokerage account with one job: build a growing stream of passive dividend income to supplement retirement. Not the primary retirement vehicle (that's a 401k and Roth IRA) — this is the income supplement: money that shows up every month whether you work or not.

Where the money sits

Allocation by position · colored by tier

Who actually pays the bills

Estimated annual dividend income by position

The Core Three

All new monthly contributions split between these three. SCHD leads after the spring buys; JEPI has nearly caught JEPQ, so JEPQ is now the slightly underweighted one to favor next.

SCHD
$3,152 · 14.35%
Core Three leader
JEPI
$2,725 · 12.41%
 
JEPQ
$2,645 · 12.04%
Now the smallest — favor next

Contribution rule: Roughly equal thirds into JEPI, JEPQ, SCHD; any extra to whichever is most underweighted. Minimum $200/mo, targeting $300-500. Fidelity allows dollar-based fractional purchases — type '$67' instead of a share count.

Every position, on its own sheet

Thirteen holdings, sorted into three tiers: Build (new money goes here), Hold (let it DRIP), and Monitor (watch, maybe trim).

Tier 1 — Build

— Monthly contributions go here 4 positions

All new monthly contributions go to these positions only. No new positions without strong justification.

SCHD
Schwab US Dividend Equity ETF
Dividend growth — the long-game compounder
Build
snapshot
Value$3,152
% of acct14.35%
Cost basis$3,045
Gain / loss +$107 (3.51%)
Income / yr$110
Yield~3.5%

Lower yield now but dividend and price grow consistently. The long-game compounder. Most tax-efficient of the Core Three (qualified dividends). Still the Core Three leader after the April mega-buy, and now back in the green.

JEPI●
JPMorgan Equity Premium Income ETF
Income + stability
Build
snapshot
Value$2,725
% of acct12.41%
Cost basis$2,815
Gain / loss $-90 (-3.2%)
Income / yr$204
Yield~7-8%

S&P 500 covered-call ETF. Monthly dividends, quality management, sustainable yield, low volatility. Spring contributions favored it as planned — it has now nearly drawn level with JEPQ.

JEPQ●
JPMorgan Nasdaq Equity Premium Income ETF
Income + growth
Build
snapshot
Value$2,645
% of acct12.04%
Cost basis$2,547
Gain / loss +$97 (3.81%)
Income / yr$264
Yield~9-11%

Same covered-call strategy as JEPI but Nasdaq / tech-heavy. Higher yield with more growth upside. Its SEC yield matches its distribution yield — the income is real. Now the slightly smallest of the Core Three, so it's the one to favor next.

O●
Realty Income Corp
Monthly income + real estate
Build
snapshot
Value$831
% of acct3.78%
Cost basis$883
Gain / loss $-52 (-5.87%)
Income / yr$42
Yield~5%

'The Monthly Dividend Company.' 30+ years of dividend increases. Monthly payer. Real estate diversification.

Tier 2 — Hold

— DRIP, do not add 8 positions

Held and allowed to DRIP. Do not sell, do not add. Let compounding work.

BP
BP PLC ADR
Energy income (concentration risk)
Hold
snapshot
Value$3,303
% of acct15.04%
Cost basis$2,000
Gain / loss +$1,303 (65.17%)
Income / yr$139
Yield~4.2%

Yield around 4.2%. Held for income and energy exposure. Now down to about 15% of the account from ~20% in April as other positions grow — the planned dilution is working. Watch for dividend policy changes.

⚠ Still the largest single position at ~15% (down from 20.3% in April). Do not add; keep letting other positions grow to dilute it further. The large unrealized gain (+$1,303) also makes selling tax-expensive. BP cut its dividend in 2020.
AAPL
Apple Inc
Legacy growth winner
Hold
snapshot
Value$2,321
% of acct10.57%
Cost basis$412
Gain / loss +$1,909 (463.61%)
Income / yr$9
Yield~0.4%

Held for a huge unrealized gain (+$1,909, +464%). Hold, do not add. Let DRIP work.

⚠ Tax impact of selling is significant given the +464% unrealized gain — consider capital gains before ever trimming.
MTB
M&T Bank
Regional bank
Hold
snapshot
Value$1,514
% of acct6.89%
Cost basis$593
Gain / loss +$920 (155.1%)
Income / yr$44
Yield~2.9%

Solid regional bank with a growing dividend. Big total gain (+155%).

XYLD●
Global X S&P 500 Covered Call ETF
Covered call (S&P 500)
Hold
snapshot
Value$1,006
% of acct4.58%
Cost basis$1,031
Gain / loss $-25 (-2.43%)
Income / yr$111
Yield~11%

The strongest covered-call base (S&P 500). Hold, do not add.

KO
Coca-Cola
Dividend aristocrat
Hold
snapshot
Value$937
% of acct4.27%
Cost basis$589
Gain / loss +$348 (58.98%)
Income / yr$26
Yield~2.8%

60+ year dividend grower. Never cuts. Boring perfection.

WFC
Wells Fargo
Recovered bank
Hold
snapshot
Value$936
% of acct4.26%
Cost basis$310
Gain / loss +$626 (201.88%)
Income / yr$22
Yield~2.3%

Recovered well, dividend growing again. Massive total gain (+202%).

SCHY
Schwab International Dividend Equity ETF
International dividend
Hold
snapshot
Value$678
% of acct3.09%
Cost basis$711
Gain / loss $-34 (-4.72%)
Income / yr$23
Yield~3.4%

International diversification — the global cousin of SCHD. Adds non-US exposure to an otherwise all-domestic portfolio.

NLY
Annaly Capital Management
Mortgage REIT (watch)
Hold
snapshot
Value$631
% of acct2.87%
Cost basis$519
Gain / loss +$112 (21.58%)
Income / yr$85
Yield13.48%

Mortgage REIT, acceptable risk at the current small size, yields well.

⚠ Mortgage REITs are interest-rate sensitive and have historically cut dividends. The high distribution yield warrants skepticism. Position is small (~$631). Watch Fed policy quarterly.

Tier 3 — Monitor

— Watch quarterly, may trim 1 position

Watched quarterly. Off-strategy or concentrated positions that may be trimmed.

QQQH●
Neos Nasdaq 100 Hedged ETF
Hedged Nasdaq (off-strategy)
Monitor
snapshot
Value$1,181
% of acct5.38%
Cost basis$883
Gain / loss +$299 (33.82%)
Income / yr$112
Yield~9.5%

Not a dividend-income play and doesn't fit the strategy cleanly, but sitting on a +33.8% unrealized gain.

⚠ Watch. Do not add. Consider selling if the gain erodes below $200 or a better use of capital emerges.

Known risks, eyes open

No portfolio is perfect. These are the parts being watched on purpose.

BP concentration (improving)

BP is now ~15% of the portfolio, down from ~20.3% in April — still the single largest position, but the plan to let other holdings grow and dilute it is visibly working. Do not add. The +$1,303 unrealized gain also makes selling tax-expensive. BP cut its dividend in 2020.

Covered-call concentration

The portfolio holds JEPI, JEPQ, and XYLD — three covered-call products (together about 29% of the account). In a strong bull market, covered calls cap upside. An accepted tradeoff for consistent monthly income.

NLY interest-rate risk

Mortgage REITs are rate-sensitive and have historically cut dividends. NLY's distribution yield is high enough to warrant skepticism. Position is small (~$631). Watch Fed policy quarterly.

For personal planning and entertainment only. This is one real person's real portfolio shown as a learning exercise — it is not financial advice and not a recommendation. Always consult a licensed financial advisor before making investment decisions.