Tuesday, July 9, 2024

Happy Independence Day/Dividends Are Amazing

As I'm writing this blog post, it is currently July 4th. With this blog post set for publication on July 9th, nobody will see this until after the conclusion of Independence Day weekend. But I hope everybody has a great weekend of relaxation and gratitude with their families.

For those of us in the United States, this is none other than the birthday of our nation. This country owes a debt of gratitude to all of those who have fought, bled, and given life and limb for this country (and their families) in the last 248 years.

As a country, I believe we owe so much to those 56 brave signers of the Declaration of Independence on that July day in 1776 and thereafter. They essentially signed their own death warrants and committed treason against Great Britain, the most powerful nation in the world at that time.

It all started with them. They were rebels with a cause. Those men and their families were willing to risk their own lives and fortunes for the idea that we were endowed with inalienable rights granted to us by God.

On this day, I'm grateful to be an American. This country has its share of issues just like any other, but there's no other place I'd rather be right now. This is home.

I feel so very blessed to have the privilege of living out my life as I see fit. Arguably the biggest blessing in this country is our overall belief that we can strike out on our own paths and shape our own destiny.

Since I was 12 years old, I have been fascinated with dividend investing. For the last seven years, I have been a real-money dividend growth investor. For the majority of those years, my gross income was below $40,000. I never exceeded $70,000 in gross income in a given year.

Yet, consistently setting aside and investing capital is beginning to yield tangible results.

Image Source: Track Your Dividends

Thanks to my regular capital contributions of between $1,500 and $2,000 a month and current dividend income, the dividend snowball is finally starting to roll down the hill. My expenses could rise in the years to come. But as I develop my career, my income could as well. So, I think these contributions could be maintained.

If that turns out to be the case, my portfolio is on track to surpass $1 million in value and throw off $37,000 in annual dividend income by my 40th birthday. Even adjusting for an average annual inflation rate of 3.5%, this would be equivalent to almost $24,000 in annual dividend income in today's dollars. 

If I were to move out of my parents' house, I estimate this is what my annual expenses would be to live a relatively comfortable life.

I'm sharing all of this because it is so mindboggling to see the power of compounding work in your favor. As much momentum as my portfolio is starting to build up, I'm so excited that the best days are yet to come.

Concluding Thoughts:

In closing, I'm grateful to be living in a country that allows people to pursue their dreams, big and small. In my view, this wouldn't be possible without the sacrifices made by so many great people throughout the history of this country and God's divine providence.

God Bless America and Happy Independence Day to all of my fellow Americans!


How was your Independence Day weekend?

What's your American Dream?

As always, thanks for reading and please feel free to comment below!

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