Nice Raise but Div Growth is Way Better

04 Mar 2018 17:51

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It was that time of year again where I had to sit down with my supervisor and discuss what went well, what didn’t, and where my career is going. You probably guessed it, this was my annual review. Once we disposed of the pleasantries it was time for the real purpose of this meeting…how much of an annual raise was I getting!

As usual it was in the very low single digits range that was above average and exceeded the current inflation rate. I typically receive very good reviews but anyone that has been working in the corporate world can attest raises for the last 10 years have been at the low end but I’m not discouraged.

On the dividend growth investing side my annual dividend grow rate will be more than double my annual raise for the 6th year in a row! At this pace my dividend growth income will catch up to my annual salary near my early retirement goal 10 years from now. Trick is not to get overconfident and to also keep an eye on the third runner in this race called “Inflation”. It is a slow and methodical race to early retirement but with dividend growth keeping its momentum I just might cross the finish line.

Just goes to show how powerful dividend growth is over the long term. Just wish I had started this style of investing 30 years ago.


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