02/05/2022
I just recorded the latest episode of Dash Away Debt and my focus was on dividend stocks. This morning I was reminded that you have to grow your stocks like you would a garden. Continue to invest in whatever small amounts you can afford and reinvest your dividends to keep growing them.
As an example, I bought one share of Starwood Property Trust April 30th last year. My first monthly dividend was $0.48. Over the last year, I would buy an additional unit of stock and now today I own 7.51966 shares and it is now paying me $3.61 in dividends. Reinvesting that buys me another 0.14856 shares, which will increase my dividend next month, and the next month, and the next month. Am I going to retire on this? Probably not, but in a couple years it may be able to pay for my monthly cell phone bill.
