My favorite thing about Dividend Growth 👀
Living off Dividends 🔥
My favorite thing about dividend growth investing?
You don't have to invest $2M to live off dividends.
Or even $1M.
Or even 500k.
And in a lot of cases-
Less than 300k.
How is this?
This is completely due to the compounding effect that takes place when you invest into companies that increase their dividend payouts yearly and reinvest dividends.
In the scenario in the picture below, I'm assuming:
$1,000 monthly contributions
7% price growth rate
8% dividend growth rate
3.5% dividend yield
And get this-
In this scenario, you could live off dividends by only contributing $317,000.
Keep in mind, the dividend ETF $SCHD over the past decade had a price growth rate of about 11% and a dividend growth rate of around 12%.
So it's completely possible to live off dividend with even less than $317,000 in contributions.
The compounding effect is real.
And when you buy stocks that allow the compounding effect to take place-
The dividends REALLY start rolling in.
If you missed it..
I recently launched Tickerdata!
Tickerdata is a spreadsheet integration tool that gives you the ability to automatically pull in live stock data for over 70,000 different stocks, 30+ years of historical financial statement data, other key financial metrics, and it can pull in data from over 70+ stock exchanges all across the world, straight into your spreadsheet.
You can access Tickerdata and download my spreadsheets below:
You can also subscribe to the Tickerdata YouTube here, where I'll post tutorials and even more stock analysis!
Other News…
At the end of every month, I send out a newsletter to my paid newsletter subscribers with a list/spreadsheet of all the dividend stocks that I believe to be currently undervalued.
This sheet was received by nearly 200 dividend investors last month. (Wow!)
If you’d like to receive this sheet at the end of this month, you can sign up here:
Also—
For the last few months I’ve been testing out different brokerages as I’ve been deciding which I like best.
After trying out nearly 10 different brokerages, I’ve settled on Interactive Brokers.
If you’d like to check them out, you can do so below: 👇
That’s all for now! Feel free to respond to this email and let me know of any thoughts you have!
See you next week!
Dividendology