Taking Care of Business (Dividend Growth Investors' Theme Song)

[livingdeb]

There is a subgenre of personal finance bloggers who espouse working toward financial independence by living on a small amount of their income and throwing every cent they can into dividend growth stocks. These are stocks that pay a dividend and where the dividend is expected to increase every year, generally because it has already done so for

Comments

[p_j_cleary]

I got all excited about Dividend Mantra, but reading his updates, it looks like the dividends he's getting amount to some really decent pocket change, but not quite retirement-level bucks.

[livingdeb]

True. But then he started with a 5K investment in 2010, and he was making around 45K. I think he expects to be done in about eight more years. (Which for him, unlike for us, is age 40.)

Since you can really only receive about 3% of your money via dividends, you have to save a lot more than if you're going for the 4% rule.