- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Dividend Growth Investing
Posted on 3/14/24 at 12:15 pm to SquatchDawg
Posted on 3/14/24 at 12:15 pm to SquatchDawg
quote:
SquatchDawg
quote:
I worked up a spreadsheet on this once wondering if compounding and reinvesting dividends would grow into a substantial income.
What assumptions did you use? What were the general outcomes of your theory? Time Frame you modeled, amount of money modeled, yield modeled? Curious to the results of your mock up.
Posted on 3/17/24 at 2:58 pm to ThatsAFactJack
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.
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.
This post was edited on 3/17/24 at 3:00 pm
Popular
Back to top
Follow TigerDroppings for LSU Football News