Let me tell you– I LOVE a dividend stock (and ETFs/index funds that throw them my way).
I know growth is a factor too, but it’s likely I’ll see more of that in the long-term, especially after a block of time like the last few months…
I remember a few years ago I excitedly told my husband that we’d made $300 in dividends that year JUST FOR HAVING OUR MONEY SIT THERE.
It was something that neither set of parents ever talked about. In fact, I’m pretty sure my in-laws don’t have a savings account, let alone any investments. So my husband and I figured this stuff out thanks to ye olde internet.
Whatever I’d invested my 401(k) funds in at the time mainly paid up the dividends at the end of the year. The sheer pride and excitement I felt over that $300!
The crazy thing is that, these days, we make in dividends that every 3 weeks on average. Ever since rolling old 401(k)s into a single IRA, paying attention to what I’m putting our money into, and saving nearly 50% of our gross income in 2021, I’m really starting to actually see a little momentum. By nature, the real speed won’t happen for decades, but I love comparing dividend earnings year to year.
As of end of Q3, we’re already within dollars of what we made in all of 2021– and we haven’t invested nearly as much this year because I took a six month break from full time work! These numbers do not include my TSP (federal employee equivalent of the 401(k)– dividends are automatically reinvested and don’t show up on any of the reports I receive), our HSA, or interest from savings accounts.
Most of our dividends are automatically reinvested, but I do have some in my brokerage account that go to cash and I distribute how I see fit when a nice little balance forms.
Now, if only I can get these kinds of numbers on a monthly basis! We’ll keep chugging along…
-K