The power of Dividend and Reinvested Dividend [Passive investing]

Опубликовано: 14 Декабрь 2024
на канале: The Stoic Investor

611

Timestamps:
00:27 - Dividend Statistics
01:56 - S&P500 ETF example
02:50 - Growth stocks example
03:10 - High yield (3%) example
04:45 - Thoughts on yield vs growth
05:24 - Importance of dividend growth
06:26 - Closing thoughts

GMT study: https://gfmasset.com/2019/07/75-of-sp...
S&P500 calculator: https://dqydj.com/sp-500-return-calcu...

Dividend has accounted for a larger portion of investor's returns than price appreciation. How come a 2% yield beat 10% annual return? Find out in this video where I explain the math behind dividends accumulative power

An S&P500 ETF yielding 2% and appreciating at 10% annually will return you 4,000% from dividend alone over 30 years without reinvesting it.

A high yield stock or ETF with a 3% yield growing at 7% will return 120% reinvested dividend in under 20 years!

Patient and passive dividend investors are tough to beat even for the most aggressive growth investors. And even more difficult If they also find companies able to grow their dividend payout together with a rising share price!

Disclaimer: This video is purely my opinion and should not be regarded as factual information. I am not a financial advisor. This is not a recommendation to buy or sell securities. Do not assume any facts and numbers in this video are accurate. Always do your own due diligence.

My personal stock portfolio currently consists of the following stocks:

Activision Blizzard (ATVI stock)
Amazon (AMZN stock)
Microsoft (MSFT stock)
MongoDB (MDB stock)
Nextera Energy (NEE stock)
Nvidia (NVDA stock)
Tesla (TSLA stock)
The Trade Desk (TTD stock]