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