Benefits of the Dividend Investing Strategy

By: GenXinvestor

In this post, I look at the benefits of the dividend investing strategy.  If you follow my monthly dividend income reports, then you’ll know that I’m a big fan of this approach.

dividends

The first thing I like about dividend investing as a strategy, is that it forces us to think long term.  It’s definitely not a get rich quick scheme.  It involves the careful selection of companies and investing in them over a long period of time, rather than buying and selling stocks on a daily basis like a day-trader.

The second thing I like about dividend investing is that it’s a strategy that helps me stay invested during rough markets.  Rather than focusing on the market value of my holdings, I use my rising level of dividend income as a measure of progress.  I find this to be a strong pillar of support during the bad times.

A few months ago, I wrote about how I reached a dividend milestone in one of my investment accounts.  I had crossed the $1000 in dividends a year threshold.  After looking at my account a few days ago I realized that the annual dividend income is now at $1325!  It has increased nearly 33% in just seven months!

This brings me to the third and final thing that I love about the dividend investing strategy: how quickly that dividend income grows.  Three things come together that makes this and investment strategy on steroids.

  1. Investing money from my savings
  2. Re-investing the dividend income each quarter, and
  3. When companies raise their dividend payout.

All three have really given my dividend income a major boost this year, so much so that we’re on track to exceeding our annual goal of $7,500 in dividends.  Now dividend investing is certainly not for everyone, but I find that it’s been working for me so far and I intend to stay the course.

If you liked this article, check out my other dividend investing articles:

Why I Reinvest My Dividends

The Joy of Being a Dividend Investor

Why Dripping is Like Planting Your Very Own Money Tree!

Image Credit: Photo by Stuart Miles/Freedigitalphotos.net

2 thoughts on “Benefits of the Dividend Investing Strategy

  1. BeSmartRich

    Love the dividends, especially when they are growing. My life became a lot more goal oriented ever since I discovered dividend investing. Wish I discovered it earlier 🙂

    Cheers!

    BSR

    Reply
    1. GenXinvestor Post author

      I really feel that dividend investing is such an empowering strategy for the average person. Over time you literally can replace your employment income. What’s not to love about that?

      Reply

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