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A Dividend Growth Snowball In Action

January 31, 2017 by Jason Fieber 62 Comments

Dividend growth investing has been very kind to me.

By living well below my means and intelligently investing my capital in high-quality dividend growth stocks, I’ve essentially bought my freedom.

I’ve been able to buy my time.

But what good is owning your time at a young age if you’re at risk of losing it? Is it better to have been free and lost freedom than to have never been free at all? 

Fortunately, I don’t have such concerns.

And that’s because dividend growth investing largely insulates me from that, as the passive income that has bought me my freedom is highly likely to continue growing at a rate faster than inflation over time, thus only buying me even more freedom.

I don’t have to worry about selling off stock in order to generate income. I’m not buying a group of funds that have such low yields that I have to make up the difference by slowly getting rid of the equity I worked so hard over the years to attain. Being as young as I am, this is important to me.

Why worry about losing your freedom when you could instead worry about what to do with too much freedom?

See, my Full-Time Fund is set to generate ~$10,800 in dividend income over the next 12 months.

Now, that’s based on how much, in aggregate, every company in the portfolio is set to pay out in dividends over the next year.

But because these are dividend growth stocks, we know that just about every company in the portfolio should announce a dividend increase over the course of the year.

Most of the companies I invest in are growing their dividends at somewhere between 6% and 7% a year.

Think Johnson & Johnson (JNJ), PepsiCo, Inc. (PEP), and Union Pacific Corporation (UNP).

Indeed, you can pull up David Fish’s Dividend Champions, Contenders, and Challengers list – a fantastic resource containing information on more than 700 US-listed stocks with at least five consecutive years of dividend increases – and see exactly what kind of dividend growth to expect, as the dividend growth is actually averaged out across the list.

Dividend Champions are stocks with 25+ years of consecutive dividend increases. Dividend Contenders are stocks with between 10 and 24 consecutive years of dividend increases. Dividend Challengers are stocks with 5-9 consecutive years of dividend increases.

Companies that have registered more than 25 consecutive years of dividend increases averaged dividend growth of ~6% last year. Companies that have paid their shareholders increasing dividends for between 10 and 24 consecutive years averaged dividend growth of ~7.5% last year. The number is closer to 10% for companies with shorter streaks.

All 768 stocks that are currently on the list averaged dividend growth of ~8.5% last year.

A dividend growth snowball is a portfolio chock-full of dividend growth stocks.

It could be thought of as a snowball because it starts to roll all by itself, and it rolls faster and faster the bigger it gets.

The more dividend income one is expected to receive, the more the dividend increases start to impact the growth of the portfolio. And dividend reinvestment speeds this process along that much further.

Well, I’m going to show you what that looks like in real-time.

Let’s just assume, conservatively, the stocks in my portfolio average 6% dividend growth this year. That would accordingly grow my dividend income by 6%.

We’re talking an increase of approximately $650 in annual dividend income as a result.

That means my dividend income would grow from ~$10,800 to ~$11,450.

If that doesn’t strike you as pretty amazing, let’s break that down real quick.

If I wanted to increase my dividend income by $650 with fresh capital out of my own pocket, do you know how much I’d have to invest? 

I’ll give you a hint: a lot.

My portfolio has a yield of approximately 3.4% right now.

So if I wanted to replicate that yield with new capital, I’d have to invest ~$19,100 in new money to achieve the same increase in my dividend income that the dividend raises this year likely will. 

Just think about that for a second. 

When I was just starting out back in early 2010, I had to invest over $19,000 of my hard-earned cash in order to build an asset base of high-quality dividend growth stocks that could generate $650 in passive dividend income for me.

Now I don’t have to lift a finger.

It’s completely organic. It happens without my input.

It’s old money becoming new money. It’s money cloning itself.

I always say money can work harder than I ever could. It works 24/7. Never gets sick or tired.

Well, that’s never more apparent than when I look at the power of dividend growth investing.

It would take me a hell of a lot of work in order to be able to invest more than $19,000 this year, especially considering that I’ve slowed down a lot in order to enjoy some of my newfound freedom.

If I wouldn’t have quit my job at 32 years old, maybe I’d still be able to work harder than my money. But all of the saving and investing is a means to an end – and that end most certainly isn’t just more money.

Moreover, I always try to maintain perspective.

$19,000 is a pretty solid annual income for someone working a full-time job. And then you’d have to factor in taxes, the cost of getting to and from work, lunches, etc. A job can actually cost a lot of money. Plus, we’re not even talking about living expenses here. In reality, it would require a good-paying job and a lot of frugality in order to be able to invest that much capital in a year.

When I landed my first service advisor job back in 2006, I was only grossing around $28,000 per year. So when I say my money can work harder than me, I’m not exaggerating. Moreover, this effect will only magnify itself over time as the totals grow and as the dividend increases continue to pile up.

I also try to remain mindful of the millions of people out there in the world living in poverty. These people don’t even have the opportunity to work, save, and invest.

As such, this is an amazing spot to be in. Receiving a “pay raise” for doing absolutely nothing that would otherwise require me to work extremely hard and invest tens of thousands of dollars is a dividend growth snowball in action.

In addition, dividend reinvestment only adds to the snowball’s speed.

If I were to reinvest my ~$10,800 (a tally that grows by the month) in dividend income over the course of the year, that would further increase my expected dividend income by another ~$360 (assuming the same 3.4% yield noted earlier).

All in all, we’re talking ~$1,000 in dividend income growth. That would move my expected dividend income from ~$10,800 to ~$11,800. That’s just one year of dividend growth.

When I first started investing back in early 2010, I knew this was all possible.

But seeing it happen in real-time is incredible. I can’t even begin to explain how it feels to see my freedom, time, and opportunities to grow right in front of my eyes… all while doing very little to make it so.

I had to aggressively save and invest for more than a year before I was able to say that I could expect $1,000 in ongoing dividend income from my portfolio.

I had to put away almost $30,000 of my own money in order to accomplish that same feat!

That required many 50-hour workweeks. Many days of going to work in the dark and coming home in the dark. I was getting screamed at on the phone by upset customers. I had to work with technicians that hated their jobs. Every night ended with a sigh. And every morning started with an alarm blaring at me.

My life is now blessedly alarm free. And I’m able to do what I want, when I want, with whom I want.

On top of that, the snowball is rolling without my assistance. The blood, sweat, and tears I put into building that snowball and rolling it as hard and as fast as I could for more than six years of my life is now paying dividends… literally.

Said another way, the numbers you see above are assuming no fresh capital investment. This is all organic income growth.

Just know that you can get here too, if you work at it. You have to want it. You have to be willing to put in the work up front. You have to remain patient and persistent. You have to keep climbing, keep moving.

But the hard work does pay off.

They say if you build it, they will come. Well, if you build and roll the dividend growth snowball, freedom will come. And then more freedom will come. And then more.

It’s waiting for you.

How’s your dividend growth snowball working out? Excited to see it roll without your assistance? Interested in building your own dividend growth snowball? Check out my coaching service.

Full disclosure: I’m long all aforementioned stocks.

Thanks for reading.

Image courtesy of: Sira Anamwong at FreeDigitalPhotos.net.

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Filed Under: Dividend Growth Investing

About Jason Fieber

Jason Fieber became financially free at 33 years old by using dividend growth investing to his advantage. Jason has authored two best-selling books: The Dividend Mantra Way and 5 Steps To Retire In 5 Years (also available in paperback).

 

Jason recommends Personal Capital for portfolio management, Mint for budgeting, Schwab for the brokerage account, and Morningstar, Daily Trade Alert, and Motley Fool for stock ideas. This blog is hosted by Bluehost. If you'd like to start your own blog, Jason offers free coaching when you use our Bluehost affiliate link.

 

Jason's writing and/or story has been featured across international media like USA Today, Business Insider, and CNBC.

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Reader Interactions

Comments

  1. shaymychael says

    January 31, 2017 at 12:21 pm

    Awesome Jason! My next purchase on Tuesday will put my over the next milestone of $2,080! This means that my little buddy is earning over 1 dollar an hour!

    Keep it up Jason! 15k is right around the corner!

    Reply
    • Jason Fieber says

      January 31, 2017 at 12:28 pm

      shaymychael,

      $1/hour begets $2/hour begets $5/hour. So on and so forth. 🙂

      Keep at it!

      Cheers.

      Reply
  2. Powell says

    January 31, 2017 at 12:52 pm

    Hi Jason,

    some words from Germany. I started investing 2 years ago. Spending about 65% of my income in dividend growth stocks like T, VZ, MO, JNJ, ABBV and all the other cash flow mashines. At the moment i receiv about 190€/month. I am now invested in 30 different companies which increase their dividend since decades. Every time i see an dividend increase at mydividend.de it feels great and i can see the dividend snowball in action.
    I hope you will write a lot more articels, you are one of my inspiration.

    Greetings from the other site of the ocean.

    Reply
    • Jason Fieber says

      January 31, 2017 at 12:55 pm

      Powell,

      Appreciate you stopping by all the way from Germany! 🙂

      That’s great that you’re seeing the snowball in action like that. To see money make more money in real-time is just incredible. I’m a hard worker. I’m far from lazy. But I take great comfort in knowing that I can take it easy these days, letting my money do most of the heavy lifting. After all, none of this is about money. It’s about freedom.

      It’s great to see a plan come together, isn’t it?

      Best regards.

      Reply
    • Marcelo says

      February 1, 2017 at 7:33 am

      Hey, I’m also a foreigner (Brazilian living in Europe), and what has always put me off are the 30% tax for dividend income. How do you deal with that?

      Reply
      • Jason Fieber says

        February 1, 2017 at 12:15 pm

        Marcelo,

        Well, I don’t have to deal with that because I’m a US citizen. That said, there are many countries that have bilateral tax treaties with the US, reducing the sticker rate down below 30%. I’d definitely check into that. 🙂

        Take care!

        Reply
  3. Dividend Collector says

    January 31, 2017 at 1:51 pm

    Hi Jason,

    It is amazing to see the dividends grow without lifting a finger. I’m really happy that I started investing so early in life ( and that I was fortunate enough to start investing when stockprices took a good beating).

    Cheers,

    DC

    Reply
    • Jason Fieber says

      January 31, 2017 at 2:12 pm

      DC,

      I’m with you. I’d still be in a great spot by 40 if I were to start today with $0. But I sure wouldn’t want to try it!

      Very, very glad the me of a few years ago had the foresight necessary to start putting the pieces together. I owe my life to him. 🙂

      Enjoy the ongoing benefits over there.

      Best wishes.

      Reply
  4. jebaxter says

    January 31, 2017 at 1:58 pm

    Just curious…do you even bother tracking expected future dividends and if so how (personal capital, spreadsheet, etc)? Do you know for example how much you expect to make next month or do you just look at last quarter/year and know generally it’s X amount (or likely greater with increased dividends).

    Reply
    • Jason Fieber says

      January 31, 2017 at 2:14 pm

      jebaxter,

      That’s a good question. I’m not sure there’s any “right” way to do something like that.

      I know what I’m already set to earn over the next 12 months based on current dividend rates. I can then just assume a conservative dividend growth rate, like I did in the article. I won’t know what will actually happen until it comes to pass. Until then, it’s (fairly accurate) guesswork.

      Cheers!

      Reply
  5. Sean says

    January 31, 2017 at 2:04 pm

    The best concept thathat exists, and the reason we all do this. The best thing is you can add as many zeros that you’d like and the end result would still be the same. Imagine income going from $118,000 to $129,000 simply by existing? The power of zeros. I love it!

    Quick note in the beginning you said $10,800 then referenced $11,800 a couple times. I assume the $10,800 was the typo?

    Reply
    • Jason Fieber says

      January 31, 2017 at 2:15 pm

      Sean,

      The power of zeros, indeed. Although I don’t do any of this for the money, the freedom that the money translates into is wonderful. The more my money clones itself, the more free I become. It’s a very nice spot to be in.

      Thanks for catching the $11,800 typo. I’m not sure where I got that from. $10,800 is the right number. I corrected the article.

      Best regards!

      Reply
  6. fireinlondon says

    January 31, 2017 at 3:58 pm

    Hi Jason,

    Thanks for sharing your experience! I have to say it is great to see those dividends steadily rise. I am a bit behind you but I am now firmly in the seeing a noticeable increase based on dividend growth and new capital, so a while to go before I can pull the trigger.

    I think you summed up the whole thing perfectly in the one sentence:
    “Just know that you can get here too, if you work at it. You have to want it. You have to be willing to put in the work up front. You have to remain patient and persistent. You have to keep climbing, keep moving.”

    People have to remember that this sort of thing “doesnt just happen” – you have to work hard at it!

    Keep up the good work!
    FiL

    Reply
    • Jason Fieber says

      January 31, 2017 at 4:22 pm

      FiL,

      Absolutely. This didn’t come about via magic. It was a lot of hard work. A LOT. I mean, I was absolutely killing it from morning until night for years.

      But… it was all worth it. I just got back home from a nice mid-afternoon workout. I now get to relax. Then take a shower. Eat some frugaltastic (and delicious) slow-cooked chicken tacos for dinner. Snuggle with a couple puppies. Read. Watch a little television. Go to bed. It’s a nice life.

      Sounds like you’re putting in the hard work. The results will come. 🙂

      Best wishes!

      Reply
      • fireinlondon says

        February 1, 2017 at 4:41 pm

        Hi Jason,

        Spot on – hard work and so many people aren’t willing to put the effort in, but it is always good to see the real life version that has done it, gives the determination of further down the line!

        Yup – slow but steady does it 🙂
        Cheers,
        FiL

        Reply
  7. Sundeep says

    January 31, 2017 at 6:57 pm

    Hi Jason,

    I think I read it before on your old site, but that idea of needing to invest $19k of fresh capital to equal your anticipated dividend increase is really powerful.

    Combined with reinvesting your regular dividends really shows you the power of the snowball.

    Awesome post!

    Reply
    • Jason Fieber says

      January 31, 2017 at 7:35 pm

      Sundeep,

      Glad you enjoyed the post!

      When you see how much you’d have to invest to achieve the same income growth as what happens organically through dividend increases, it really adds perspective. And I think it shows just how powerful this strategy is.

      Thanks for dropping by.

      Cheers.

      Reply
  8. j says

    January 31, 2017 at 8:21 pm

    Great post jason. It reminded me a lot of a similar post on the dm website. My january/april/october dividend totals are on the low side– however the feb/may/aug/nov and mar/jun/sept/dec months are killer..

    I remember getting my first dividend checks/statements when I was dripping via individual companies and via computershare. $4.50 here, $12.00 there. But after a few years of heavy investing and re-investing the dividends, I can see the fruits of my labors.

    My feb/mar totals are set to be over $1000! Wow. And I can’t wait to see my Dec 2017 totals… It is as you said a snowball indeed. I think what really puts it into perspective is your comparison analogy of investing fresh capital to get the current growth on your portfolio. When I think of it that way, this snowball is rolling away quite nicely–and as you say it, “all on its own”.

    My thinking before used to be that seeing my brokerage balance drop because of a mild correction would make me feel ill. After all, it’s kinda painful seeing those red numbers in your Scottrade account; but now, I always make sure I have some fresh capital to pounce on those deals! I’d love for T to drop below $40. I’d scoop up some more! The way I see it now, it’s more shares accumulated of quality companies.

    I’d like to see your next post in December 2017. Or another milestone when you break $24000 in annual dividends. Thanks for the great post J.

    j

    Reply
    • Jason Fieber says

      January 31, 2017 at 8:28 pm

      j,

      You’ve got the right line of thinking there. To be sad about cheaper stocks that you’re buying is like being sad when the grocery store offers discounts on food you’re going to buy. Even if you’re done accumulating, you should probably prefer cheaper stocks (for reasons I’ve laid out before).

      That’s so great you’re seeing the snowball start to run away. That’s what it’s all about! 🙂

      It won’t be too long before the organic dividend growth is on par with what adding $40k or $50k would amount to. And it only accelerates from there. It’s pretty incredible stuff.

      Keep at it!!

      Best wishes.

      Reply
  9. Tawcan says

    January 31, 2017 at 8:42 pm

    The snowball effect is real and very powerful. Having your money cloning itself is pretty awesome. That’s like not doing any work and still get a raise. Can’t find that with any real job that’s for sure.

    Reply
    • Jason Fieber says

      January 31, 2017 at 8:43 pm

      Tawcan,

      It’s the best job I’ve ever had. 🙂

      Cheers!

      Reply
  10. payingforprivateschool says

    January 31, 2017 at 8:43 pm

    Love it! The previous you helped the present you -indeed! What I like about dividend stocks market fluctuations do not matter. A month ago we picked up some GSK. It was a bit cheaper than when we got it (but still a great deal) and so at our price point we get 5% dividends from a company that works hard to help people. If the stock doubles in prices or drops in half I still get that 5% and that works for me as the headlines and other peoples opinion of the company doesn’t matter – it is what the fine folks there can do with the business that matters.

    Reply
    • Jason Fieber says

      January 31, 2017 at 10:54 pm

      payingforprivateschool,

      Absolutely. When you’re investing this way, your focus is almost exclusively on business fundamentals/operations. At that point, stock prices become somewhat irrelevant, other than to perhaps offer good buying opportunities. It’s then pretty easy to sit back, collect, and be a long-term dividend growth investor. 🙂

      Thanks for dropping by!

      Best regards.

      Reply
  11. The Financial Tech says

    February 1, 2017 at 12:30 am

    Wow the snowball effect is awesome and that post prove it well. In fact, it prove that dividend investing can bring something like an anual salary, if the money is well invested.

    Reply
    • Jason Fieber says

      February 1, 2017 at 2:16 am

      TFT,

      Rolling a real-life snowball is a lot of fun. But a dividend growth snowball? Way better! 🙂

      Cheers.

      Reply
  12. Buy, Hold Long says

    February 1, 2017 at 1:17 am

    That is a truly magnificent way to look at it. It’s your money working for you. People may think that extra $650 a year isn’t much, but as you pointed out, that’s an extra 19k that you would have to invest. That just isn’t sustainable. You’ve done well to get to where you are now, good on you.

    Reply
    • Jason Fieber says

      February 1, 2017 at 2:19 am

      BHL,

      Once you see just how hard your money can work for you, you can’t help but be compelled to get the snowball rolling as soon as possible. Your eyes can’t help but be opened. And that’s what these articles are all about. 🙂

      Cheers!

      Reply
  13. DivHut says

    February 1, 2017 at 3:24 am

    I think everyone on a DGI journey can appreciate the dividend snowball effect. It truly is amazing and only accelerates over the years. Yes, it does take a lot of hard work to get that ball rolling, patience and consistency, but, as you stated, anyone can achieve it. It literally is there for the taking. Another great reminder of the long term power of dividends.

    Reply
    • Jason Fieber says

      February 1, 2017 at 12:11 pm

      Keith,

      Absolutely. It’s there for anyone to take advantage of. If I can do it, almost anyone can. 🙂

      Best regards!

      Reply
    • Dividism says

      February 6, 2017 at 10:34 pm

      I’m wondering if there was a point where you really felt the snowball start to move? Perhaps when you were able to save “X” dollars a month or your DGI fund value hit a certain amount? Just interested to hear the thoughts of a few people who have been at this for a number of years now. Thanks!

      Reply
      • DivHut says

        February 7, 2017 at 1:33 am

        I wouldn’t say there was some magic point where I felt the snowball took hold. I think it’s all relative and only when I look back at my annual results after several years could I see some meaningful change. Hope that answers your question.

        Reply
  14. Go Finance Yourself says

    February 1, 2017 at 6:52 am

    Nice post, Jason. I contemplated starting a dividend portfolio last year. The resources you listed are great and were some of the same ones I used as well. In the end, I decided to stick with growth stocks as I don’t need the income now and don’t want to pay taxes on dividend income I don’t need (even if the rate is low). I plan on converting a portion of my portfolio over to dividend champion stocks when I retire to generate passive income when I need it.

    Reply
    • Jason Fieber says

      February 1, 2017 at 12:12 pm

      GFY,

      Hey, there are a lot of different ways to invest, make money, and generate income. I prefer this way. But you really have to do what works best for you. 🙂

      Cheers!

      Reply
      • Go Finance Yourself says

        February 1, 2017 at 8:30 pm

        No doubt. Looks like it’s going well for you. Keep up the good work.

        Reply
  15. RichUncle EL says

    February 1, 2017 at 11:00 am

    Congrats Jason on that great snowball of income. IT is a great thing to get free money on top of free money. I believe I will hit 7K this year in dividends, and it will be great to try to catch up to you to give you some competition. LOL

    Reply
    • Jason Fieber says

      February 1, 2017 at 12:16 pm

      RichUncle EL,

      Well, I really hope I’m not anyone’s competition. My dividend income probably doesn’t have anything to do with your lifestyle (or anyone else’s). You really should only aim for your best effort. If you’re giving it your all, you’re right where you want to be. 🙂

      Best wishes.

      Reply
  16. Michael says

    February 1, 2017 at 3:31 pm

    I couldn’t agree more Jason with what you have written above. Love it when companies increase there dividends and I don’t have to work any harder to make more money, awesome. Know doubt it smart to have money work for you. keep up the inspiring stories.
    Cheers

    Reply
    • Jason Fieber says

      February 1, 2017 at 3:34 pm

      Michael,

      Appreciate the support. Glad you enjoyed the article!

      I’m not the smartest guy in the world. But I’m smart enough to let my money work for me… and stay the hell out of the way. 🙂

      Best wishes.

      Reply
  17. dividendincomebuilder says

    February 1, 2017 at 5:24 pm

    Hi Jason,
    That was a very interesting post about the power of the dividend snowball. I also like how you say in the comments that share prices become irrelevant and you focus more on the fundamentals of the business. I could not agree more.
    Thank you for sharing your thoughts.
    Regards,
    DIB

    Reply
    • Jason Fieber says

      February 1, 2017 at 6:39 pm

      DIB,

      Absolutely. I don’t even consider myself a stock buyer. I’m a businessman. I care about how a business is doing in terms of fundamentals and competitive advantages. I’m looking at sales, profit, margins, etc. I usually couldn’t care less about stock prices. It’s usually irrelevant. Once you adopt that mindset, it’s all gravy. 🙂

      Cheers!

      Reply
  18. KingZ says

    February 1, 2017 at 6:18 pm

    Like many have said, I love seeing the numbers for needed invested capital to give the same amount of your divi growth. I also like running the numbers of what the dividend income will look like 5 years out, 10 years out, etc….strictly from dividend growth and reinvested dividends. And to know that if I keep adding capital, it will be even more. This is the type of article that spells out the power of dividend growth and the DGI strategy, and why it is so attractive. Well done.

    *FWIW, I have CL and HRL on my watchlist, maybe even some more VZ for the higher yielder.

    Reply
    • Jason Fieber says

      February 1, 2017 at 6:42 pm

      KingZ,

      Happy to share. I think when you really start to look at the power of dividend growth and reinvestment, it puts everything in perspective. Once you see how fast your snowball is rolling without your assistance, the journey becomes far, far less stressful. It’s a machine that takes some serious effort to build. But once it’s running… it’s truly beautiful. 🙂

      Best wishes!

      Reply
  19. MrDoublingDollars says

    February 2, 2017 at 2:08 am

    I was just talking with my neighbor today and we were talking about stocks (as we normally do). Today though he decided to show me his portfolio and his history tracking. He has been a dividend growth investor for 3 years, and he has gone from $3,800 in 2014 to $5,500 in 2015 and he earned just over $7,500 last year. Already he is showing $8,600 for this year, but it will be higher as he buys more.

    The dividend growth snowball in action!

    I love DGI, but have decided to focus on growth now with the intent to swap over in the future.

    Reply
    • Jason Fieber says

      February 2, 2017 at 2:24 am

      MDD,

      That’s what I’m talking about. Sounds like your neighbor is gonna have an avalanche on his hands pretty soon. 🙂

      Cheers!

      Reply
  20. Regan says

    February 2, 2017 at 6:40 am

    Your readers have already commented on this and you have mentioned it before but… my favourite line is regarding the $650 increase “..I’d have to invest ~$19,100 in new money to achieve the same increase in my dividend income..” that is just flooring to hear / realise. I like when you point out the small things sometimes as a great reminder to stay on track.
    Thank you again 🙂

    Reply
    • Jason Fieber says

      February 2, 2017 at 11:22 am

      Regan,

      I’m so glad the article gave you some perspective. Dividend growth investing is truly an amazing way to build wealth. I think my experience/result proves a lot of that out, but realizing just how much you’d have to invest to achieve the same income growth as what the dividend increases provide organically really opens your eyes. At least it did for me. 🙂

      Best wishes!

      Reply
  21. ARB says

    February 2, 2017 at 8:04 am

    Ah, those dividend snowballs. What better way to achieve financial freedom?

    It’s always amazing to hear how much new money you would need to achieve the same amount of dividend growth as the dividend increases announced by the companies. It’s amazing how hard money works because we work pretty damn hard. Of course, we treat our money better than our employers treat us, so our money has more incentive to work harder.

    Keep up the great work!

    Sincerely,
    ARB–Angry Retail Banker

    Reply
    • Jason Fieber says

      February 2, 2017 at 11:27 am

      ARB,

      What better way? If I knew, I would have gone that route. 🙂

      I’m with you on treating that money right. I’d do anything it asks. Get water when it’s thirsty. Get a chair when it needs to sit down. Etc.

      Amazingly enough, the money rarely asks for anything at all. Just an acknowledgement here and there (which is why I wrote this article).

      Cheers!

      Reply
  22. Tall Investing says

    February 2, 2017 at 5:30 pm

    Hi Jason,

    About two years ago I discovered your – then – DM blog and have followed you ever since. It’s so great ti see your snowball getting bigger and bigger, ironically while you are enjoying the Florida sun 🙂

    I recently started my own little blog to track my snowball progress and connect with like minded people. I listed you under ‘Resources’ but i guess ‘Inspiration’ would be more accurate.

    Thanks Jason, I can’t wait to have your ‘problem’ of too much freedom one day!

    All the best,
    Tall Investing

    Reply
    • Jason Fieber says

      February 2, 2017 at 7:46 pm

      Tall Investing,

      Appreciate you following along. You know, I really couldn’t do it without the support of readers like yourself. You make it worth it for me. Truly. 🙂

      I wish you nothing but the best of luck with the blog, as well as your growing snowball. I hope you find tremendous enjoyment and success with it. By the way, I see you used my Bluehost affiliate link to register your blog. If you’d like, shoot me an email via my contact form. I’d be happy to offer you a 30-minute version of one of my coaching sessions (free of charge), focusing specifically on blogging.

      Thanks for dropping by!

      Best wishes.

      Reply
  23. Dividism says

    February 3, 2017 at 3:39 pm

    Like Tall Investing, I also drew inspiration from your DM blog and began my own small DGI fund – from zero! I liquidated it to pay for grad school, and just recently was able to give the fund a “re-boot.” My focus is on being able to get the dividend snowball rolling for me. I have a toddler son with autism and need to make sure that our financial future is secure. Eventually, the fund will roll into a special needs trust to cover him for the long, long term. Well, that and a lot of life insurance! Like you, I think that it is an important message to get out, and I’m even trying my hand as a rookie blogger to connect with families similar to mine and hope to be able to share my methods and results with them. Thanks again, your blog posts are making a difference to a lot of us. All the best,
    Brian @ Dividism

    Reply
    • Jason Fieber says

      February 3, 2017 at 4:20 pm

      Dividism,

      That’s great that you’re able to restart your portfolio and get back on track. I totally understand how life can get in the way of saving and investing. I’ve been really fortunate that my journey’s trajectory has been almost uninterrupted, but there are so many things that can crop up along the way.

      Wish you the best of luck as you rebuild and share things with the world via the blog! 🙂

      Cheers.

      Reply
  24. Make it Hail! says

    February 3, 2017 at 3:49 pm

    Love the snowball! Congrats Jason

    Reply
    • Jason Fieber says

      February 3, 2017 at 4:22 pm

      Make it Hail,

      That’s a great name. I hope you’re able to really make it hail over time. 🙂

      Best regards.

      Reply
  25. timeinthemarketblog says

    February 5, 2017 at 11:48 am

    It’s definitely awesome to see the growth just from reinvestment and dividend growth. The long term track record is there and I feel like dividends make it easier to stomach the downturns that will eventually happen as you’re just reinvesting and buying at lower prices which will help long term growth.

    Reply
    • Jason Fieber says

      February 5, 2017 at 11:52 am

      timeinthemarketblog,

      Absolutely. Once you start to focus on business fundamentals and the income that investment is providing, the actual market value of a stock doesn’t really matter anymore. If anything, short-term volatility is usually just a long-term opportunity. 🙂

      Thanks for dropping by!

      Cheers.

      Reply
  26. Henry says

    February 5, 2017 at 7:47 pm

    Hello Jason,

    Are you using your dividend money to live or do you reinvest some?

    Reply
    • Jason Fieber says

      February 5, 2017 at 7:59 pm

      Henry,

      I’ve discussed that quite a bit on the updates that have gone over my passive income and portfolio. The dividend income covers my core personal expenses, but I also earn an active income on top of that. In fact, I highly doubt I’ll ever need all of my dividend income to pay my bills. I’ll probably always earn money in some capacity. But I buy stocks here and there. I also have other ventures that consume capital.

      Cheers!

      Reply
  27. Carles Diaz says

    December 19, 2017 at 9:04 am

    Dear Jason. I’ve been investing during 2 years now, about 90% of my income, in a full time job. I managed to save a total of 36,000€ (I am from Spain), and i am continuing my plan. The thing is that I am seeing how I receive dividends more often (and reinvest them), but I feel a bit frustrated because I feel they are quite small. Is it normal after 2 years of aggresive saving? My companies are CocaCola, Procter and Gamble, Nestle, Unilever, Diageo and The Kraft Heinz Company, so I am investing in dividend growth aristocrats. How was your situation after 2 years of saving and from which moment should I see the snowball effect in motion?

    Thank you.

    Reply
    • Jason Fieber says

      December 19, 2017 at 11:33 am

      Carles,

      I found that things started to really accelerate for me once I crossed over $100k in portfolio value, upon which time the dividend income was becoming a significant secondary source of income (which I was reinvesting and increasing at an exponential rate).

      Sounds like you’re doing wonderful over there. Success is inevitable if you keep at it like that! 🙂

      Best wishes.

      Reply
  28. Dividend Portfolio says

    February 4, 2018 at 11:58 am

    Reading this in 2018. Just wanted to say that’s an excellent way to look at dividend growth investing. I’m close to what you were talking about regarding the size of your portfolio and what you can expect in dividends per year. So, I still have a small portfolio, a little bit over $20,000 generating me around $700 in annual dividends. I hope to cross the $1000 threshold this year. But, I’m so looking forward to that time when I can earn $10000 in annual dividends every year. Until then, I will keep reading great articles like these for constant inspiration they provide.

    Thanks.

    Reply
    • Jason Fieber says

      February 4, 2018 at 12:07 pm

      DP,

      The great thing about this concept is that it scales up and down accordingly. So your numbers might seem small to you here, but the acceleration starts to occur not long from now. And it’s a snowball that can practically grow infinitely in size. The acceleration begets acceleration. Wealth begets wealth. Dividend growth begets dividend growth. It’s this amazing thing that advantageously works on your behalf, harder and harder, for the rest of your life. 🙂

      Thanks for dropping by!

      Best regards.

      Reply

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Hi. I'm Jason Fieber. I achieved financial independence and retired in my early 30s by using dividend growth investing to my advantage. I cover stock analyses, market news, dividend updates, and the dividend growth investing strategy.

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