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It’s been nearly 2 years since we launched the Compounding Dividends portfolio.
The goal when we launched it was to build a reliable income stream, with a $5,000 per month (or $60,000 per year) target.
Let’s see how close we are to that goal.
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Since the launch of the portfolio, we have:
Zero dividend cuts
Sold one company
Had a cannibal stock initiate a dividend
Had 11 companies increase their dividends since we bought them
The average company has increased its dividend by more than 9%!
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If this were to continue, our income would double in about 8 years.
If we look over a longer period, the companies in Our Portfolio have increased their dividends by 11.5% per year.
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At that rate, it takes just over 6 years for our income to double.
So far this year we’ve received $35,080 in dividends.
We’re projected to receive nearly $48,000 in dividends this year.
That’s:
Almost $4,000 per month
$923 every week
$131.50 per day
All for sitting back and letting our companies do the work.
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Dividend Growth
If we assume an average dividend increase of 10%, it will take less than 3 years to hit my goal of $5,000 per month or $60,000 per year in dividends.
If we’re conservative and assume:
8.5% growth in dividends per year
7% growth in stock price per year
That we reinvest our dividends
Then in 5 years, we’ll have:
$64,462.36 per year in dividends
$5,371.86 per month
A portfolio value of $1,698,530
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