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49% of people voted the $0-$500 range on my poll
So let’s do some hypothetical growth of $500/month broken down year by year
(thread)
So let’s do some hypothetical growth of $500/month broken down year by year
(thread)
For reference, here was my poll https://twitter.com/decadeinvestor/status/1309562425432309764
Before I break it down, here are my assumptions:
-2% stock growth per year
-4% dividend yield
-$500/month (account starting at $0)
-DRIP
*this is all hypothetical growth, make sure to do your DD when investing
-2% stock growth per year
-4% dividend yield
-$500/month (account starting at $0)
-DRIP
*this is all hypothetical growth, make sure to do your DD when investing
Year 1: $6,000 account value 
$240 in divi’s
Year 2: $12,364.80 $494.59 in divi’s
Year 3: $19,116.58 $764.66 in divi’s
Year 4: $26,278.87 $1,051.15 in divi’s
Year 5: $33,876.62 $1,355.06 in divi’s
$240 in divi’s Year 2: $12,364.80
$494.59 in divi’s Year 3: $19,116.58
$764.66 in divi’s Year 4: $26,278.87
$1,051.15 in divi’s Year 5: $33,876.62
$1,355.06 in divi’s
Year 6: $41,936.32 $1,677.45 in divi’s
Year 7: $50,486.05 $2,019.44 in divi’s
Year 8: $59,555.60 $2,382.22 in divi’s
Year 9: $69,176.58 $2,767.06 in divi’s
Year 10: $79,382.52 $3,175.30 in divi’s
$1,677.45 in divi’s Year 7: $50,486.05
$2,019.44 in divi’s Year 8: $59,555.60
$2,382.22 in divi’s Year 9: $69,176.58
$2,767.06 in divi’s Year 10: $79,382.52
$3,175.30 in divi’s
Year 11: $90,208.98 $3,608.36 in divi’s
Year 12: $101,693.68 $4,067.75 in divi’s
Year 13: $113,876.66 $4,555.07 in divi’s
Year 14: $126,800.36 $5,072.01 in divi’s
Year 15: $140,509.82 $5,620.39 in divi’s
$3,608.36 in divi’s Year 12: $101,693.68
$4,067.75 in divi’s Year 13: $113,876.66
$4,555.07 in divi’s Year 14: $126,800.36
$5,072.01 in divi’s Year 15: $140,509.82
$5,620.39 in divi’s
Year 16: $155,052.82 $6,202.11 in divi’s
Year 17: $170,480.03 $6,819.20 in divi’s
Year 18: $186,845.21 $7,473.81 in divi’s
Year 19: $204,205.40 $8,168.22 in divi’s
Year 20: $222,621.09 $8,904.84 in divi’s
$6,202.11 in divi’s Year 17: $170,480.03
$6,819.20 in divi’s Year 18: $186,845.21
$7,473.81 in divi’s Year 19: $204,205.40
$8,168.22 in divi’s Year 20: $222,621.09
$8,904.84 in divi’s
If we fast forward to year 30?
$481,082.14 $19,243.29 in divi’s
What about year 40?
$947,451.71 $37,898.07 in divi’s
But wait, there’s more
$481,082.14
$19,243.29 in divi’s What about year 40?
$947,451.71
$37,898.07 in divi’s But wait, there’s more
From years 1-10, the dividend income increased by $2,935.30!!
BUT
From years 11-20, the dividend income increased by $5,296.48
BUT
From years 21-30, the dividend income increased by $9,557.03
THAT is the power of compounding
BUT
From years 11-20, the dividend income increased by $5,296.48
BUT
From years 21-30, the dividend income increased by $9,557.03
THAT is the power of compounding
Thanks for reading this thread!
I hope you enjoyed seeing a breakdown of this hypothetical growth of $500
@DecadeInvestor
I hope you enjoyed seeing a breakdown of this hypothetical growth of $500
@DecadeInvestor
