Building income by investing for high yields and compounding that with reinvestment just works. And the Rule of 72 gives an easy way to project what turn out to be very attractive future results.
Today, I want to show you this by revealing the income growth in my personal retirement account…
And how I’m doubling my income stream every two years.
I invest 100% of my 401k account in the high-yield investments from my Dividend Hunter service. I regularly preach to my Dividend Hunter subscribers to track only income earned, and that share values will take care of themselves. I personally track my portfolio income quarterly.
Here are some of the variables of my dividend investing strategy:
- I am making regular monthly contributions to my 401k account
- Those contributions and earned dividends are invested into more shares of the recommended Dividend Hunter stocks
- I invest the available cash to have a relatively balanced position in each Dividend Hunter recommended investment
- About 7.5% of my portfolio is invested using a BulletShares ETFs bond ladder, but I do not count the income from these ETFs
- 20% of my monthly contribution goes into the BulletShares ETFs
- 10% of the quarterly dividend income comes from a separate account that tracks the recommended portfolio of my Monthly Dividend Multiplier service; however, I am not contributing to that account and those stocks pay dividends at significantly lower yields
As is the case for each of us, the details of how I employ the Dividend Hunter strategy and my results are uniquely mine. I do closely follow the advice I provide to my newsletter subscribers. I am very focused on growing my income stream to fund a retirement five to seven years out. I have tracked my quarterly portfolio income since the first quarter of 2019. Here is the good stuff:
- Portfolio income increased every quarter except for the pandemic-whacked 2020 second quarter, when many companies suspended or reduced dividends; by the 2020 third quarter, I was back equal to the 2020 first-quarter income level
- For the 2021 third quarter, my portfolio income was up 61% compared to the same quarter a year earlier, showing how quickly the income stream recovered from the pandemic-triggered crash
- Over the last four quarters, my year-over-year income growth averaged above 50%
The growth rate varies depending on how I invest new cash (contributions and earned dividends) and the payouts from the variable dividend investments on the Dividend Hunter recommendations list. The worst quarter over the last year still produced 43% year-over-year income growth.
With the stock bear market this year, I expect my income to grow faster as I invest in lower share prices for higher yields. My income growth starting in the fourth quarter will be very strong. I love buying income investments when they are “on sale.”
I have no idea about the individual investment returns in my 401k. The broker puts up a number but does not account for dividends earned and reinvested, so it means nothing to me. Plus, I don’t focus on the returns anyway.
I focus on building income. As you can see, it’s working out very well.
The Rule of 72 says that if you divide 72 by your expected annual return, the result will tell you how long it will take to double your money. Using the Rule, my stable and growing Dividend Hunter income stream will more than double every two years. My income will quadruple in four years, and increase by six times in six years. It will be an excellent retirement.
You can do the same. Simply join The Dividend Hunter today and start growing your income stream with the high-yield dividend stocks I recommend there.
