I know you love raises.
I came across an interesting article, The Incredible Growing Dividend. It’s written for those with a little more investing background than many readers here, but I feel it worth sharing.
I’ll start with a quote:
Although stock prices themselves are quite volatile, the cash flows companies collectively pay out to investors don’t really fluctuate as much as one would think.
We know about this from earlier posts here. In particular:
- The value of raises and the single most ignored metric by investors.
- Keeping a perspective when investing, companies spend a lot of time with their stock prices in the shitter and it’s uncomfortable.
An interesting statistic from a bear market we remember experiencing:
In the bear market from 2000-02, dividends dropped by just 2% even though the market got cut in half.
Crazy right? The market is cut in half, you’d likely respond by selling or stopping to invest, yet your paycheck would have been hardly affected. In fact, a time like that represents a great buying opportunity and by measuring the paycheck & raise you believe it in your gut.
Dividends have never fallen over a five year period
Never is a pretty good thing to align to, if you’re trying to invest for the long term.
I recommend reading The Incredible Growing Dividend. It’ll make you feel more certain in your search for a safer way of investing in the stock market while helping to reset your perspective from “portfolio size” to “paycheck and raise”.