re: Dividend Growth Investing

It wasn’t anything special or complicated

IIRC it was really a pretty basic compounding formula with annual amount contributed, stock appreciation % and dividend % as the variables. Line two picked up the new total and did the same thing…and I messed with the assumptions and carried it out however many years. The thought was the compounding of the dividend would juice the growth over time. Also, I was looking at blue chips for security - and they typically don’t have high dividend payouts.

It works but it has to be in a tax deferred program or you get eaten alive by taxes. For me, I was considering post tax money and couldn’t contribute enough to move the needle to make it worth trying as an alternative to standard index investing in a company Roth. I just couldn’t get enough money into it fast enough to where an average 4% or so dividend payout was significant and it would take some time managing.