While some are in a frenzy to buy and to sell, I aim to acquire and hold. Hold long term. It is amazing how compounding works when one invests using dividend reinvestment. Each dividend payment increases my net worth, increases my holdings, increase the number of shares I own, increases my income. All happen because at one time or another I simply bought some shares.
The Small Steps That Is The Beginning
When I started, I was was buying small amounts. I started with one share of several large companies.
Here are the initial dividends from my first share purchases:
| Company 1 | $0.17 |
| Company 2 | $0.40 |
| Company 3 | $0.32 |
| Company 4 | $0.28 |
You might think, “What!? That’s only $1.17! What kind of wealth is that?”
You could be right in saying so, as $1.17 is not much wealth. Plant some vegetable seeds in a garden, and after a week or three, you might have a few one inch shoots. Do you say, “What!? They’re only one inch high! That’s not much to eat!”
For me, $1.17 was just the beginning. How many people have never even started? As previously mentioned: “When is the right time to start a journey to financial stability? There is only one answer. The answer is Now.”
Of course, I did not stop at $1.17. Over time, I increased my investment in these companies, and purchased shares in other companies. Companies also increased their dividends. Nowadays I have what I consider a nice portfolio which provides me income.
One of the many great things about dividend investing is that once you own the shares, you own them forever You don’t need a test to own shares. You don’t need a license to own shares. You don’t need anyone’s permission to own shares. No one will ever force you to sell your shares (unless the company is bought for cash by another company). You will own the shares forever unless you decide to sell. If you don’t sell, you can own them for your lifetime, and can pass them to your heirs. Forever means forever.
Started yet? Let me know here.
The photo is from a package of imported noodles.
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