[2025 Latest] How I Used My ¥293,624 in Dividends & The Risk of High-Yield Stocks Cutting Payouts | January Total Asset Analysis

1. Introduction | Reviewing This Week’s Asset Performance and Investment Strategy

Last week, despite market volatility, my portfolio remained relatively stable.
This week, we’ll take another deep dive into total asset movement, dividend earnings, and the impact of market trends to keep our investment strategy sharp.

One key focus this time: "How to Use Dividends Effectively."
While reinvesting dividends is the standard approach, we’ll explore alternative ways to utilize them for enhancing lifestyle and financial security.

Let’s dive into this week’s asset report!

(Check out last week's article here!)

2. Total Asset Trends and Analysis

(1) This Week’s Total Asset Movement

This week, my total assets showed a slight -0.06% decline. However, looking closer, my stock holdings increased, suggesting that the drop wasn’t significant.

• Cash & Savings: -5.82%
  → Decreased due to mutual fund purchases. This was a planned investment, so no concerns.
• Stocks (Equities): +1.45%
  → Increased as the market recovered. There were temporary dips, but overall, stocks rebounded.
• Mutual Funds: -1.45%
  → Market downturn caused temporary valuation losses. Since these are long-term holdings, no immediate worries.
• Pension: -1.32%
  → Impacted by domestic market fluctuations but remains stable for long-term growth.
• Points: -2.31%
  → Declined as I used Rakuten Points for gas expenses—no major impact.

3. Market Influences & Investment Adjustments

Deep-Sea Shock Impact

Markets experienced temporary chaos and volatility, but ultimately, stock prices rebounded.
This reaffirmed the importance of staying calm and not panic-selling during downturns. Instead, such moments present great buying opportunities for strong companies.

Effect of U.S. Interest Rate Hikes

Higher interest rates put short-term pressure on high-yield stocks, but their long-term income potential remains strong.
Since my portfolio is designed for stable cash flow, I don’t plan any major adjustments yet.

USD/JPY Exchange Rate Fluctuations

While exchange rate movements are unavoidable, a weaker yen boosts the value of dollar-denominated assets.
Despite short-term volatility, my long-term diversified portfolio should continue benefiting from currency fluctuations.

4. Future Investment Strategies

Regular Portfolio Review (Every 3 Months)

I already conduct quarterly portfolio assessments, which I’ll continue to fine-tune.
Balancing risk and stability remains a top priority.

Adjusting Dividend Reinvestment Strategy

Instead of reinvesting everything into high-yield stocks, I aim to diversify into growth stocks and index funds to mitigate risks, especially in economic downturns.

Maintaining a Long-Term Investment Mindset

The recent market fluctuations tested my patience, but staying composed and seeing downturns as buying opportunities has paid off.
Short-term market noise shouldn’t dictate investment decisions.

5. January 2025 Dividend Report

(1) Dividend Earnings Overview

• Total January Dividends: ¥293,624
• Year-over-Year Growth: +175.30% (January 2024: ¥106,644)
• Progress Toward Annual Goal (¥3,000,000): 9.80%

This pace is highly encouraging.
Even with market fluctuations, the consistent income from dividend stocks proves that my high-yield strategy is working.

(2) Why Dividend Income Grew

Key factors behind the increase include:

• Consistent Dividend Reinvestment Over the Past Year
  • Reinvesting dividends has compounded returns, accelerating income growth.
• Strong, Defensive Dividend Stocks
  • Investing in sectors like consumer staples, energy, and financials, which maintain stable cash flow even in downturns.
• Mutual Fund Distributions Increasing
  • Allocating capital to dividend-paying global equity funds further diversified income sources.
• Higher USD Dividends Due to Yen Depreciation
  • Holding more USD-based dividend stocks increased payout amounts when converted to yen.

What This Teaches Us About Building Dividend Income

1. Choose stable, dividend-paying companies
2. Consistently reinvest dividends
3. Consider currency exchange factors & macroeconomic trends

Want to maximize dividend income? Research companies with strong financials and steady payout histories!

6. Using Dividends for Human Capital Investment

This month, I allocated ¥40,000 from dividends to my wife’s online education program to support her career development and future financial stability.

(1) Why Use Dividends for This?

• Enhancing career skills for a smoother return to work
• Long-term financial stability through education investments
• The power of passive income: this decision was made effortlessly
  • Without dividends, this would have required careful budgeting.
  • The ability to invest in education without financial stress is the true power of dividend income.

(2) Future Plans

• Continue allocating dividends to skill development investments for the family.
• Education and skill-building will strengthen financial stability long-term.

Instead of spending dividends frivolously, I focus on using them for future growth.

7. Investing in Health: The Overlooked Asset Class

Just like financial assets, health is a long-term investment.
My current health-focused habits include:

(1) Daily Nutrition Routine

• Morning Protein Shake (Soy Milk + Whey Protein + Banana Yogurt)
  • Supports muscle recovery & gut health
  • Sustainable because it’s funded by dividends!

(2) Consistent Bodyweight Training

• 15-minute morning workout (squats, push-ups, planks)
  • Boosts metabolism & muscle endurance
  • Seeing fitness as an investment helps maintain motivation.

Before I focused on finance, I never considered health as an investment.
But in the long run, staying healthy reduces medical expenses & improves quality of life—just like smart financial planning.

8. Key Challenges for Next Week

(1) Deciding How to Use the New NISA Growth Investment Allowance

With stock prices rising, choosing the right stocks for the New NISA is tricky.
Balancing high-yield vs. growth investments while managing time constraints (due to work & parenting) will be a key challenge.

(2) The NEP Stock Crash: A Lesson in Dividend Investing

One major event this week was NextEra Energy Partners (NEP) stock crashing after announcing a name change and cutting its dividend entirely.

Since NEP was a high-yield stock, I had previously held it but cut my losses early.
Looking back, it was the right decision.

Key Lesson from the NEP Dividend Cut

• When a high-yield stock cuts dividends, its stock price plummets.
• Prioritizing companies with strong financials & consistent dividend increases is crucial.

This event reinforced the importance of vetting dividend stocks for financial stability.

(3) Moving Forward

Next week, I’ll focus on:
✔ Finalizing New NISA investment choices
✔ Monitoring market trends
✔ Further optimizing portfolio stability

This comprehensive breakdown of dividends, investment strategy, and financial decision-making should provide valuable insights for long-term investors.
If you’re navigating similar investment decisions, let’s discuss them in the comments!