Happy Monday!

We have a great week of investing ahead. Today, I’m going to share some big stocks reporting earnings during the week. These stocks are so significant they may move the entire market!

On top of that, I’ll share the incredible compounding power of dividend growth investing. This strategy, which I call the 'Dividend Snowball’, can be your path to financial independence and building generational wealth.

Let’s do this!

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The Key Story

The Power of Dividend Investing - The Snowball Effect

Understanding the Dividend Snowball

• Dividend growth investing is a strategy where you invest in companies that consistently increase their dividend payments.

• Dividend Reinvestment creates a compounding effect that grows exponentially over time, similar to how a snowball gains mass as it rolls downhill.

Modeling 35 Years of Investment

• I will use a popular dividend growth stock, ADP, as an example. ADP is a dividend aristocrat (25+ consecutive years of dividend increases)

• For this model, I used estimates of 10% growth rates for both the dividend and the stock price.

Example 1: One-Time Investment of $1,000

• Total Value (Reinvested): $61.4K

• Total Value (Non-Reinvested): $32.4K

You nearly double your total value by reinvesting dividends. In year 35, you get paid $996 in dividends, almost a 100% return on your initial investment from dividends alone.

Example 2: $1,000 Invested Every Month

• Total Value (Reinvested): $6.1 Million

• Total Value (Non-Reinvested): $3.8 Million

Again, the difference is huge—$2.3 million more by simply reinvesting your dividends. By the end of the period, you would be earning just under $100,000 annually in dividend income if you reinvested, compared to $62,000 without reinvestment.

Start Now to Maximize Growth

Time is the most crucial factor in the success of dividend investing. The sooner you start, the more time your investments have to grow and compound.

Free Tool

The Dividend Calculator

Earnings Week

Nvidia Stock May Move The Market

Wednesday (08/28/2024)

• $SJM - The J. M. Smucker Company - (Before Market Open)

• $NVDA - NVIDIA Corporation - (After Market Close)

• $CRM - Salesforce, Inc - (After Market Close)

• $CRWD - CrowdStrike Holdings, Inc - (After Market Close)

• $HPQ - HP Inc - (After Market Close)

Thursday (08/29/2024)

• $DG - Dollar General Corporation - (Before Market Open)

• $BF.A - Brown-Forman Corporation - (Before Market Open)

• $BBY - Best Buy Co, Inc - (Before Market Open)

• $CBP - Campbell Soup Company - (Before Market Open)

• $DELL - Dell Technologies - (After Market Close)

• $LULU- Lululemon Athletica Inc - (After Market Close)

• $ULTA - Ulta Beauty, Inc - (After Market Close)

Our Top Picks

Find Better Dividend Stocks!

Upgrade to premium so you get my best stock picks every month. Here’s some of the winners I’ve picked before:

• Exxon Mobil (XOM) - 248% Total Return Since 2020 Purchase. 11.10% Dividend Yield on Cost

• Broadcom (AVGO) - 200% Total Return Since Spring 2023 Buy

Thanks for the read! Let me know what you thought by replying back to this email.

— Zach

Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter