Saturday, August 24, 2019

3-Year Dividend Crop Growth


The chart shows the growth of the Dividend Farm’s crop from August 1, 2016, through August 1, 2019.

3 year dividend stream growth chart

For the 3-year period:
  • Compound Annual Growth Rate (CAGR):                   11.3%
  • Average Annual Growth:                                               11.9%
  • Total Growth:                                                                 35.8%

Growth from 2016 through the first half of 2018 was exclusively due to increases in company dividend payments, dividend reinvestment, and the power of compounding.

Albert Einstein quote about the power of compound interest.

Infusions of capital were made in the fall of 2018 and spring of 2019.  These additions helped increase the slope of the trend line.

Extending this trend to an age where I can take full Social Security payments means the dividend stream may double – more than twice – to over $58,000.  Although not an enormous amount, coupling with Social Security, budget discipline, and little or no debt results in contented retirement.

It’s not flashy, but it’s working.  Dividend Farming is financial pragmatism – doing what works – even when considered slow or unsophisticated.  If the end result is a good night’s sleep, solid “wake up” money, and limited risk along the way, who cares about flash?


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