No passive income at 35? I’d follow Warren Buffett and aim for decades of dividends

Warren Buffett started investing when he was 11 years old, in 1942.

I struggle to remember what I was doing at that age, but it probably involved chasing a football around a field somewhere. I certainly wasn’t flicking through the Financial Times to see which stocks I could invest my pocket money in.

But I do think the Oracle of Omaha’s eight decades of stock-picking demonstrate the potential longevity of an investor’s journey. It definitely shows that 35 isn’t too old to start building an investment portfolio.

Indeed, if I opened a Stocks and Shares ISA today and maxed out my contribution limit each year, I could be sitting on a million-pound portfolio within 25 years. That’s based on the assumption that I generate an average historical annualised stock market return, which isn’t guaranteed.

Needless to say, the annual passive income potential from such a portfolio could be very sizeable indeed.

The joy of dividends

Oil magnate John D. Rockefeller famously said: “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in“.

Warren Buffett also likes to see his dividends rolling in. In 2023, his holding company Berkshire Hathaway is on track to collect around $6bn in dividend income.

Naturally, I will never be anywhere close to even 1% of the vast wealth of Buffett or Rockefeller. But I don’t need to be to reach my own personal financial goals.

And like most investors, I still share their love of receiving dividends. This is passive income that regularly trickles into my brokerage account, even when I’m sleeping.

Recent income

Below, I’ve listed the stocks that I’ve received a dividend payment from in the last five weeks (since 1 May):

Of course, these cash payments differ in size and regularity.

For example, growth stock Ferrari only carries a dividend yield of 0.66%. Meanwhile, Legal & General’s yield is over 12 times higher than that, which reflects its status as a mature income stock.

While these companies are totally different from each other, they’re both incredibly profitable. That’s essential for dividend sustainability and growth.

Even better, Ferrari shares are up an impressive 38% since the turn of the year. So each is contributing to my portfolio return in their own way, either through share price appreciation or dividend income (or both).

Taking the long view

Now, this is not to say that any of these dividends can’t be cut or cancelled. That is entirely possible.

In fact, it’s almost certain to happen after any significant length of time investing. That’s why I own around 30 dividend stocks — to lessen the passive income hit from any reductions or cancellations.

Finally, this income snapshot of my portfolio just covers the last five weeks, which has admittedly been a fruitful period regarding pay dates for my stocks.

But a few weeks really is the blink of an eye in the grand scheme of things. That’s because I’m hoping to receive decades of dividends by investing regularly.