Power of Investing in Dividend Stocks: Wealthy Get Richer

In today’s episode I want to share with you some basics about dividend investing as well as the power of dividends and how they can benefit you and build wealth for you over the long term.

We’ll cover topics such as, what is a dividend? How much can you make with dividends? Why do companies decide to pay dividends? And more.

We are also going to take a look at some examples of basic dividend investing portfolios and we’ll see how the rich becomes exceptionally wealthy by just putting their money in these dividend-paying stocks.

Finally, I am going to introduce to you my latest course “Passive Dividend Investing” which will show you exactly how to invest in high paying dividend stocks and grow your capital through dividend appreciation, so that you can manage your investments yourself, instead of relying on third parties to do it for you.

★ Click Here to Get My Passive Dividend Investing Course:

Passive Dividend Investing Course

Posted at: http://tradersfly.com/2018/01/power-investing-dividend-stock/



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33 thoughts on “Power of Investing in Dividend Stocks: Wealthy Get Richer”

  1. Like I said in my previous comment you need too much time for your account to grow in order to be able to live off of your dividends. A typical person works for about 40 years , ages 25 to 65 , if that person is able to save about $20,000 per year in a 401K or IRA you may have about $400,000 plus interest or dividends at the end of your working years. If you can get about a 5% dividend yield that equals about $20,000 per year , that is not enough income to live on. And how many people can actually save $20,000 per year ?? It is just too slow , that is why so many people have to keep working past 65 or 66 years old.

  2. Thanks Sasha, you're the greatest. Can you elaborate a bit on your decision to use a 4 hour chart? What is your insight on it? I see you using the monthly, weekly and daily chart a lot. Only in this video I saw the 4 hour chart a bit more.

  3. Dividend investing is the dumbest thing you can do. You'll never get wealthy through dividends, you'll get poorer! My portfolio grows 60% on average each year and that's not through dividends!

  4. Great video. He should have been a little more realistic about 3.5mil not being alot of money. Even to rich that s alot, very few can have that in just 3 individual stocks and not an entire portfolio even if rich unless a former CEO of company but still good points. Lol

  5. After paying down most of my Debt I am literally able to put 80% of my check every 2 weeks into the stock market. I don't know why people are looking for secret ways to build wealth. Love this guys work keep it simple man.

  6. A share of a dividend paying stock that increases dividends is an accelerating, compounding investment. As a trader and investor I see my mission to accumulate shares of these dividend growers at the smallest cost basis. For example, when I see the right opportunity in such a stock I will buy 101 shares and then when the price of the stock has lifted as little as 1% above my cost basis I sell 100 shares and hold the remaining 1 share forever – a free micro-annuity that compounds (I have a DRIP that manages fractional shares for me) at an accelerating rate. Trading + dividends = early retirement.

  7. Dividend paying stocks are not great the first year – maybe a 3% annual return – 3K on 100K investment. But typically a lot of dividend paying companies increase their payments by an average of about 5-10% per year (and occasionally cut it too!). So without putting a single penny more in the investment, the following year you'll get 3.25K (7.5% growth).
    Given that growth this is your returns with just dividend growth.

    Years Dividend return
    1 3%
    9 6%
    15 9%
    19 12%
    21 15%
    24 18%

    So with the same 100K investment after 24 years you are now getting a 18K return
    But there's a second factor at work, which is DRIP investing. So typically when a dividend is paid, the price of the shares go down by the % paid. So not only does it reinvest the 3% to buy more shares. If you look at this table
    Share price 100
    Investment 100000
    Initial yield 3%
    Number shares bought 3000
    Dividend growth 9.00%
    Div/share Num shares Dividend Yield on cost
    1 3 1000 3000 3.000%
    2 3.27 1031 3371.37 3.371%
    3 3.5643 1065.8 3798.83094 3.799%
    4 3.885087 1105 4293.021135 4.293%
    5 4.23474483 1149.3 4866.992233 4.867%
    6 4.615871865 1199.5 5536.738302 5.537%
    7 5.031300333 1256.6 6322.331998 6.322%
    8 5.484117362 1321.8 7248.90633 7.249%
    9 5.977687925 1396.6 8348.438956 8.348%
    10 6.515679838 1482.7 9660.798496 9.661%
    11 7.102091024 1582.3 11237.63863 11.238%
    12 7.741279216 1698.2 13146.24036 13.146%
    13 8.437994345 1833.8 15473.59403 15.474%
    14 9.197413836 1993.4 18334.12474 18.334%
    15 10.02518108 2182.5 21879.95771 21.880%
    16 10.92744738 2408.1 26314.38603 26.314%
    17 11.91091764 2679.4 31914.11273 31.914%
    18 12.98290023 3008.5 39059.05535 39.059%
    19 14.15136125 3411.2 48273.1235 48.273%
    20 15.42498376 3908.9 60294.71904 60.295%
    21 16.8132323 4530.5 76172.34895 76.172%
    22 18.32642321 5315.8 97419.6005 97.420%
    23 19.9758013 6320.2 126251.0594 126.251%
    24 21.77362342 7621.8 165954.203 165.954%
    25 23.73324952 9332.7 221495.2978 221.495%

    Now that is where the real money is made. You only put in 100K and not a single penny more, but are now getting 10% return after 10 years, but that's where it starts to really grow. At 15 years you are getting 15% and 20 years 60%. For that initial 100K investment you are getting a 60K a year return. At that point you could stop reinvesting and just live off the dividends.

    It's all about time and not touching the money for the first 20-25 years. Best to do this for your children, gift them 20K when they are born so when they finish college they are getting a dividend of 45K a year.

  8. Some knowledge of economics is required to understand how and why dividends on aggregate increase over time. Are you to match this performance by buying an income fund or try to outperform the average.

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