Dividends ETF: Building Passive Income Brick by Brick

Dividends ETF: Building Passive Income Brick by Brick

Dividends ETF: Building Passive Income Brick by Brick

Dividends Experiments

Hey everyone, Marcel here from Mars Money Lab! If you’ve been following my journey into passive income experiments, you know I’m all about testing real-world strategies to see what actually works, and dividend ETF investing is one of them. Back in April 2025, I kicked off my Dividends ETF Experiment using InvestEngine, a super user-friendly, commission-free platform in the UK. The goal? To build a simple portfolio that spits out growing dividend income with minimal hassle. If you’re new here, check out the full setup and methodology on the main experiment page.

Fast-forward to August 28, 2025, and things are progressing nicely. I originally planned to contribute £100 a month but dialed it back to £50 a month via autoinvest for sustainability. Life happens, and £100 isn’t always feasible, so £50 goes in automatically, with the option to add another £50 manually when I have spare cash. The portfolio is showing some solid early signs of growth. Let’s dive into the latest numbers!

Dividend Portfolio Snapshot: £376.34 and Counting

This dividend ETF investing portfolio started at £100 in April and has grown to £376.34, thanks to monthly deposits and market gains. The overall investment return is +£26.34 (+12.73%), which I’m pretty thrilled about for just a few months in. There’s also £0.48 in cash chilling there, ready for the next allocation.

Dividend ETF investing portfolio chart on InvestEngine.

Here’s a quick breakdown of my holdings (target allocations are roughly 50% VHYL, 25% VUSA, and 25% JEGP, but actual weights shift a bit with performance):

  • Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYL): £190.34 (+£13.83, +16.42%). Current weight: 50.6%/50% target. This one’s my core high-yield play at around 3% yield.
  • Vanguard S&P 500 UCITS ETF (VUSA): £98.55 (+£10.38, +22.72%). Current weight: 26.2%/25% target. Loving the growth here with its ~1.5% yield.
  • J.P. Morgan Global Equity Premium Income UCITS ETF (JEGP): £86.97 (-£1.28, -0.84%). Current weight: 23.1%/25% target. A bit in the red this month, but its ~7% yield keeps me optimistic.
Dividend ETF investing portfolio details on InvestEngine.

The portfolio’s total expense ratio (TER) is a low 0.24%, and the estimated yield is 3.57%, perfect for compounding over time. I’ve got autoinvest turned on, so it’s hands-off after the initial setup.

Looking at the growth chart from April 6 to August 28, it’s been a steady climb with a few plateaus where deposits kicked in. Started near zero, jumped after the first deposits, and now holding strong above £370. No wild swings yet, which is exactly what I want from a dividend-focused setup.

Dividends Earned: £3.43 So Far – Small but Growing!

The real star of this experiment? The dividends! I’ve received a total of £3.43 in dividends since starting. It’s not life-changing yet, but these dividends from a small starting pot will compound as the portfolio grows. The payouts have been trickling in monthly, with peaks in July and August.

Dividend chart on InvestEngine.

For the nitty-gritty on specific dividend amounts and dates, I’ve been sharing real-time updates on X. Check out my recent posts, for example:

The dividend bar chart shows payments ramping up: tiny bits in May and June, a solid bump in July, and steady in August. These ETFs pay out quarterly or monthly, so expect more consistency as we go. Stay tuned for more updates as this income stream grows!

I’ve been keeping things transparent on X @MarsMoneyLab, posting about each dividend drop and dividend portfolio milestones. It’s a great way to track the experiment in real time, plus I love hearing from you all! If you’re into passive income chats, give me a follow and join the conversation. Who knows, your questions might shape the next update.

What’s Next for the Experiment?

I’m sticking to my ETF dividend investing plan: £50 monthly contributions, autoinvest on (with the option to add extra £50 when I can), and monthly check-ins to monitor yields and rebalance if needed. By year-end, I’m aiming for steady dividend growth, and long-term? Let’s see this grow into a proper income generator through compounding. No selling here, just letting the dividends do their thing. If the market dips, I might bump up contributions for better value. Stay tuned for the year-end update!

Try It Yourself

Ready to build your own dividend machine like mine? Pick based on your location, claim a bonus, and replicate my setup (check the full experiment for steps). Start small, compounding turns £3.43 into real income over time!

Your LocationRecommended PlatformMinimum DepositBonus
🇬🇧 UKInvestEngine£100£20–£200
🌍US, Australia, EU, etc.eToro$50–$100Free $100k demo + cashback

As always, this is my personal experiment. Results can vary, and investing involves risks like market volatility. Do your own research! What do you think, ready to start your dividend journey? Drop a comment below or hit me up on X. Let’s make passive income happen! 🚀💸

Share the wealth! 💰
Marcel