From Near Collapse During the Lehman Shock to Recovery Millionaire Dividend Taro Talks About the Power of Steady Dividend Income

Even now, “Dividend Tarō,” a millionaire with about 250,000 followers on X (formerly Twitter), did not have a smooth journey.

He experienced beginner’s luck in investing that he started during his student days, but immediately after suffered a major blow in the “Lehman Shock,” losing much of his assets. What was the realization that saved him during a completely dark period of stagnation and became the trigger for building his current strong portfolio? This follows the raw trajectory of one investor’s setbacks and recovery.

Understanding the power of dividends at the bottom of despair

Dividend Tarō opened a brokerage account when he was still a teenager. He was originally interested in economics and finance, and he began investing in stocks using money earned from part-time jobs and his savings.

At that time, the stock market was in a bottom-range movement due to the impact of the “Livedoor Shock.”

“I selected stocks based on information from magazines and the internet, but since the market was on a recovery trend, I quickly made profits. I think tens of thousands of yen turned into about 1 million yen in about a month,” says Dividend Tarō (below the same).

After that, he continued making profits by repeatedly engaging in short-term trading. At the time, he recalls thinking, “If I keep investing like this, I might easily reach 100 million yen.”

That situation completely changed with the “Lehman Shock” in September 2008. All of the stocks he held dropped significantly, and almost all of the profits he had accumulated up to that point were wiped out. Since he was still a student, it must have been a major shock.

“Indeed, it felt like everything went dark in front of my eyes. However, because up until then I had been investing kind of vaguely and making money in a vague way, there was also a part of me that could accept it. After all, it was the Lehman Shock, so I treated it as something beyond my control.”

The effects of the Lehman Shock continued into the following year, and Japanese stocks fell to their lowest level since the collapse of the bubble economy. Even as the perception grew that stocks might never rise again, he continued investing because he felt there was no point in just holding cash.

“Stock prices weren’t rising, but companies that were still generating solid profits had high dividend yields, and even while losing overall, as long as I held stocks, I still received thousands or tens of thousands of yen in dividends. That’s when I realized the value of dividends and began focusing my investing on dividends.”

No timing needed! Buy immediately without hesitation

“The greatest appeal of dividend stock investing is dividend growth. Just by continuing to hold stocks, your annual dividend income increases on its own—there is nothing more reassuring than that. Once total dividends exceed the invested capital, from that point on it only generates profit.”

In order to benefit from dividend stock investing like this, at least 10 years are necessary. Since increasing dividend income assumes a certain period of time, the earlier you start investing, the better. However, when stock prices are fluctuating sharply in front of you, it is not easy to take that first step.

“If you wait for the right timing to buy when prices fall, you won’t be able to move forward. What I often say is: if prices are down, buy immediately; if they are flat, buy without hesitation; even if they are at a high level, have the courage to buy. When you have money available for stock investing, you should build the habit of buying without hesitation and focus on increasing the number of shares.”

When markets become unstable, it’s a common experience that people wait for prices to drop, only for them to rise instead. No one can know whether prices will go up or down. If that is the case, trying to time the market is a waste of time. Instead, it is more rational to focus your effort on finding stocks that consistently increase dividends.

“I am not particularly talented in stock investing, nor do I use any special investment strategy. I simply buy well-known stocks steadily and hold them.”

With the mindset of patiently investing using surplus funds and time, one should be able to walk a steady path toward becoming a millionaire.

Having overcome numerous failures and the despair of the “Lehman Shock,” Dividend Tarō discovered the value of dividends that continue even when stock prices fall. In the paid version of FRIDAY Subscription, he explains in detail three specific notable stocks (by name) that he carefully selected from a long-term perspective and that bring stability to everyday life.

 

 

▼ Haito Tarō (Dividend Tarō)
He started investing in stocks in 2006 while still a student. Although he made profits in the bottom-range market following the “Livedoor Shock” at the time, he suffered a major blow in 2008 during the “Lehman Shock,” losing more than one-third of his assets. From this experience, he rediscovered the value of dividends that continue even when stock prices fall and shifted to dividend stock investing.

He has since built a portfolio in which 90% of his holdings are dividend growth stocks. His exact timing of becoming a millionaire and the progression of his assets have not been disclosed.

His books include The Best Stock Investing: Receiving 1 Million Yen in Annual Dividends, and Start with the New NISA! The Ultimate Stock Investing Method for Receiving 2.4 Million Yen in Annual Dividends, both of which became bestsellers. He has 248,000 followers on X.

■ Dividend Tarō’s X is here