Dividend growth investing is a great lazy way of building passive growing income over time. What looks like small pocket change to most investors really adds up over time.
Take for example a company paying 60 cents per share and assuming you have 500 shares. That quarterly dividend payment amounts to $300 dollars, or annually at $1200. Assume in year 2 the dividend is increased 4 cents per share to 64 cents. The new quarterly dividend amounts to $320 or $1280 annually. I know what you’re thinking “Gee a whole $80! Go fuck yourself”.
Let’s think longer term at 10 years down the road and a continued growth of 4 cents annually. Suddenly that initial $0.60 per share has grown to $1.00 per share and that translates to $500.00 in dividends quarterly or $2000.00 annually. Almost twice the amount of passive dividend income in a 10 year time frame without lifting a finger. Add in reinvesting those dividends and adding normal purchases of stock and your income really starts growing. This doesn’t even include the money you can make from appreciation in the share price. Need some real life examples, hit up my search bar and type “dividend increase” and it should return dozens or real world examples with data I’ve compiled.
Here is an update to my dividend income for the month of September 2017 (3 tabs of data at the bottom of the spreadsheet):
Monthly dividend income for September comes in at $2040.22. This represents a 56.88% increase over last years dividend income of $1300.44.
Q3 2017 dividend income rakes in at $5627.36 for a 57.15% YOY increase of Q3 2016 dividend income of $3580.81
On an annual basis, 2017 dividend income (so far) comes in at $16,579.38 which is 17.85% higher than all of 2016’s dividends at $14,067.03. And there is still one full quarter in the year to go!
These dividends are representative of all stock holdings in all accounts (Roth, Traditional, Brokerage). You can do the same or better, it just takes time and a disciplined investing strategy.Follow me on the social medias: