Smart Money with Kai

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🧐 Dividend Investing: High Yield vs High Growth - What Wins?

As you know I love dividend investing, but today I wanted to take our discussion on Dividend vs Dividend Growth Investing to the next level – with actual numbers! We're going to look at investing $100 per week for 30 years.

Scenario Setup:

Dividend Investing: 5% starting yield, 5% annual growth

Dividend Growth Investing: 2.5% starting yield, 10% annual growth

Each year, you're investing $5,200 (that's $100 a week). Let's see how these strategies play out over 30 years.

As you can see, in the first 20 years, Dividend Investing leads with higher total dividends.

However, as we progress, Dividend Growth Investing starts to outpace traditional Dividend Investing, significantly increasing the gap.

By year 30, Dividend Growth Investing yields a staggering $466,684.46 in total dividends, far outstripping the $328,741.00 from Dividend Investing.

🔥 The Takeaway

Your choice depends on your investment goals. Are you looking for steady income now or bigger payouts in the future? Remember, Dividend Growth Investing can be a game-changer for long-term wealth building.

Stay awesome, stay invested.

Cheers,

Kai


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