I used to love searching for easter eggs during the Easter Season. My mom would lay out many eggs around the yard or church, and we would run around looking for candy-filled eggs.
Childhood memories bring us these incredible feelings of joy and happiness. I am grateful to my parents for ensuring we had moments of pure joy. As parents, we want to ensure our children have the same memories as they age.
Easter would be a special time if you grew up in the holiday spirit. Today, Easter is more known for spring break fun, but the easter bunny is still essential to many children.
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Nest Eggs. Now that I am 41 years old, I am more focused on creating nest eggs than easter eggs. My children are 15 and 11, so they grew out of the easter magic years.
Nest eggs ensure that my children can provide beautiful moments for their kids (my grandkids). Sadly, most people don’t know how to build a solid dividend growth nest egg that will provide growth and income for generations.
The three types of dividend portfolios. I like to break dividend-investing into three methods: index funds, dividend growth, and income investing.
Personally, income investing is my favorite because it is the most hands-on investing style. However, dividend growth is the preferred method for generational wealth.
Index funds are great for growth, and income investing is excellent as a paycheck replacement. That leaves dividend growth investing as the middle child. DGI gives us solid growth and an income stream.
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Today, I will explore DGI nest eggs and how we can invest in our family’s future. If we want to ensure wonderful Easter moments into the future, a DGI portfolio is ideal.
What is dividend growth investing? DGI is the process of consistently investing in large blue-chip stocks. We call consistent investing set amounts of money “dollar-cost averaging.”
As we dollar-cost average over the years, the companies also increase their dividends. Hopefully, their share price continues to rise as well. Finally, we reinvest the dividends back into the stocks, adding more shares to the portfolio.
So DGI consists of four ideals working together to create a dividend snowball.
- Dollar-Cost Averaging. Consistently investing (weekly, monthly) into blue-chip stocks. Let’s say buying $20 of McDonald’s every week.
- Share price appreciation. This price of the stocks should rise with time.
- Dividend increases. The company raises the dividends every year (hopefully).
- Dividend reinvestment. We buy more shares with the dividends they pay us.
You can build a massive DGI portfolio with all these things working together. However, DGI takes the most time to get the results we seek.
Why does it take so long? With index fund investing, our goal is to build a giant nest egg of money and create income by selling shares. This method is like buying chickens and eating them for meat.
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Income investing is the idea of buying high-yield products that give us income today. This is akin to buying chickens that can provide us with eggs today.
DGI is the combination of both. We want to build a massive chicken farm. The chickens are laying eggs and also reproducing. Over time, we will have so many eggs and chickens that the farm will overflow.
We will have the option to sell our excess chickens, excess eggs, or eat our chickens for meat. Yes, it took longer to get here, but we are in the most solid position of all the investing methods.
DGI will give us growth and income. In an ideal world, we would never sell out DGI stocks. We would live off the dividends. Is it possible? Absolutely. Let’s look at an example from my portfolio.
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The Abbvie example. Abbvie (ABBV) is one of my favorite blue-chip stocks. It is a pharmacy company that offers excellent growth and a high dividend yield—a very rare combination.
I bought my first three shares of Abbvie in August of 2019 for $63.05.
Since I bought my shares, each stock paid me $12.40 in dividends.
Today’s share price is $159.20.
It is just a fantastic sight to behold when you put it all together. This is a screenshot from my M1 Finance account, which I started later than my Wells Fargo account. I have dividends and capital appreciation.
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Now imagine this growth across 15-20 more stocks such as McDonald’s (MCD), Costco (COST), Procter & Gamble (PG), Johnson & Johnson (JNJ), Walmart (WMT), etc.
Build your nest egg today. You’ll need to get started picking your first few stocks. I have an article tailor-made for you.
“How to Pick Your First Five Dividend Stocks” will walk you through how to buy your first few dividend stocks. From there, you just need to set up a schedule to deposit your cash into the dividend portfolio automatically.
I would love to say that it is more complicated than that, but it truly is simple. Today’s investing platforms, such as M1 Finance, STASH, and Cash App, make it easy to set up schedules.
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I think that STASH is the best at scheduling and automating the process of dividend growth investing.
Conclusion. Our childhood Easter memories will live on forever as times of pure joy. We owe the same memories to future generations. However, we have to think like adults today.
We have inflation and low wages to overcome. If we don’t get our act together, we won’t have the time, energy, or money to give our children or grandchildren the easter eggs they deserve.
Having a massive DGI portfolio will give us the financial freedom to be with our kids during Easter, Christmas, and Thanksgiving.
Don’t wait until your bank account is “empty” before you make a change. I have shown you the power of dividend growth investing from my portfolio. You can achieve the same success. Happy Easter!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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