Dividends4Life: The Tipping Point Of Dividend Investing

The Tipping Point Of Dividend Investing

Posted by D4L | Thursday, January 23, 2014 | | 0 comments »

Once an investor begins the dividend journey, I would further contend that there are three more "dividend tipping points" along the way. The first point is what I like to call "getting the dividend bus rolling." When thinking about one's eventual goal it can be disheartening to see $0 in dividend income coming in with an ultimate goal of say $25,000. It seems that the task is too large and there might be a natural tendency to write it off as impracticable.

Moreover, even if you start out on this path - by diligently saving up your first $1,000 to invest for instance - the initial dividend fruits aren't especially reassuring. Eight dollars a quarter or whatever it happens to be isn't exactly going to keep the lights on. Despite delaying gratification, you still have to go to work, you still have to keep expenses in check and really if you're just starting to accumulate investing funds then the process might even be more difficult than before; not easier. If you don't elect reinvest the dividends, being able to buy an extra ice cream cone each month doesn't appear to be much of a reward for giving up access to $1,000.

Source: Seeking Alpha

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