How dividend growth investing works:

Say you start buying 1 share of $JNJ a week. A year from now, you’ll have 52 shares. Assuming your average price was $180 a share, you invest $9,360.

Each share earns $4.04 a year in dividends, earning you $210.04 a year that you reinvest.

Next year, you’ll have ~53 shares and (assuming they raise the dividend by say 4%) each share bringing in $4.20. You’ll earn $222.68

In 2023, you’ll have ~54 shares. With another 4% dividend hike, you’ll be earning $4.37 a share. You’ll earn $236.

In 2024, you’ll have ~55 shares. With another 4% raise, each share will be bringing in $4.54. You’ll earn $250.

In 2025, you should have ~57 shares. With a 4% raise, each share will be taking home $4.72, bringing your total haul for the year to $269.

2026: ~58 shares, each earning $4.91. Yearly total: $285.

2027: ~59 shares, each earning $5.11. Total dividends earned: $301

2028: ~60 shares earning $5.31. Total dividends: $319

2029: ~61 shares earning $5.52 each. Take home = $336

2030: ~63 shares earn $5.74, yields $362

2031. You have 64 shares that earn $5.97 each. Total dividend income of $382.

In a decade, your initial investment of $9,360 has earned you $3,172 besides any increase in share price. Say it’s 7% a year, you’ll have $21,982.

Now let’s say you do it for another decade.

In 2041 you’ll have earned $8,155 in dividends off of that initial $9,360. Total value will be $47k.

30 years after the initial investment: you’ll have earned another $8910 in dividends, bringing the grand total to $17,065. Total value of your stake would be over $100k.

If you do this every year & not just once and it will be worth $3mm in 30 years. Should be earning $90k a year in dividends.

$90k a year for a total of $300k spent (30% yield on cost).