I got a question:
Is it worth investing even small amounts in to dividend stocks?
My short answer: Yes!
Long answer… there are few things to keep in mind about human behavior:
- If you postpone starting, you’ll not build the habit that you need for long term success.
- You might thing an amount is small, but maybe it’s not small for YOU. Get started and be proud, because even “just” starting is something many people fail to accomplish.
- You should think about % not “absolute amount.”
Let me talk about that last one for a second. Let’s say you invest $10, and it grown $1. Big deal, right? $1. One. Dollar. Not very exciting, right?
That’s a 10% gain. Huge.
And, if you’re investing in dividend aristocrats you might get a 5–10% (dividend) raise. Even if that comes to just a couple of dollars… that size raise is quite good. Did you get that sort of raise at work? (I haven’t.)
A final point. Time is your best friend because with time compounding happens. Compounding is growth on growth… it can take a long time to see the impact, but it’s not an impact you can ignore if you want long term success.
I thought of that as I saw this tweet about health, which is also about finance. It’s worth reading the embedded link.