The Power of Compounding Dividends | Dividend Snowball Effect

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The Power of Compounding Dividends | Dividend Snowball Effect

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Күн бұрын

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The Power of Compounding Dividends cannot be denied. Albert Einstein referred to compounding as "the 8th wonder of the world."
The compounding process is the reinvestment of the dividends you receive back into your holdings. This creates a snowball effect, especially when it is a dividend growth stock. As a company increases its dividend you receive MORE dividend income, and as you receive more dividend income you reinvest those back into the security giving you MORE shares.
More shares + More income = Compounding Dividends
This concept of Compounding Dividends can Compound your wealth exponentially.
Comment below if you use this compounding concept.
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Пікірлер: 50

@MarkRoussinCPA Жыл бұрын

Which stock is your prime COMPOUNDING investment?

@brijeshkukreja7411 Жыл бұрын

PRU AMGN ABBV MDT IBM ... I like my yield around 3-4% however MSFT APPL are not great examples of div stock

@MarkRoussinCPA Жыл бұрын

@@brijeshkukreja7411 They are dividend stocks, but yes, they are LOW yield dividend stocks.

@glennshoemake4200 Жыл бұрын

AVGO

@dtkodak123 Жыл бұрын

JEPI

@dan15d20 Жыл бұрын

Gotta be something monthly like realty income,I don't know why and I know your still reinvesting the same amount if its every quarter it just feels better reinvesting your divs every month psychologically for some reason.🤣

@TortoiseInvesting Жыл бұрын

Investing a little now, and continuing to do so consistently, will grow into something absolutely amazing. I love dividends for this exact reason.

@QUINTUSMAXIMUS Жыл бұрын

I invest in STAG, HRZN, AQN (which has tanked), T, ABB, EMR (Emerson), PKXX (POSCO), VTI (Vanguard), SCHD (Schwab), HBI (Hanes). While I do reinvest my dividends and add 500 bucks, 300 bucks here and there to my various positions and have been doing that for the past 2 years, I am not sure how this could be big over say 10 years, except maybe more with capital appreciation. I have met various investment goals this year dividend wise, but it's a tough climb. Wish I had started say 7 years ago.

@mr.financial Жыл бұрын

Fundamentals of investing right here. Thank you for sharing that with the world

@MarkRoussinCPA Жыл бұрын

Appreciate the support and positive feedback

@captainahab9174 Жыл бұрын

Started my dividend snowball about a year ago. I put some in every paycheck. Really starting to see my payouts increase and I love it!

@maxnmr Жыл бұрын

I have to say honestly, best explanation there is on youtube! Keep up!

@MarkRoussinCPA Жыл бұрын

Wow thank you!

@thefreshwes Жыл бұрын

Compounding is kinda like "yea, we know this" but your spreadsheet/breakdown really makes it kinda like "wow that's impressive".

@MarkRoussinCPA Жыл бұрын

Thanks for watching!

@frankvidarte1988 Жыл бұрын

Visa and Home Depot are great compounders

@stoicdarwin Жыл бұрын

Commenting for the algorithm

@MarkRoussinCPA Жыл бұрын

Appreciate the support!

@AndyRoma68 Жыл бұрын

just a little example in order to clarify the power of snowball. let's say I have 5 differents stocks, A, B, C, D, E in dividend date order. So first I receive dividends of A, do I have to buy stocks of A as I get the money, or do i have to buy the B stoks in order to receive the next dividends? Thnaks for your wisdom

@MarkRoussinCPA Жыл бұрын

You have a couple of choices. You can set it up to have your brokerage automatically reinvest in the same stock, or you can collect the dividend and then you can reinvest it as you see fit, either in the same stock or a different stock of your choice. The 2nd path is more hands on, but this is the route I take for most of my stocks.

@javierdeharo7715 4 ай бұрын

How and where does one invest? As a total Newby I have no idea where to start. What about reporting it on taxes?

@dan15d20 Жыл бұрын

Fantastic video!

@alvinjohnson9531 Жыл бұрын

Try close-end funds. Many of them are inexpensive and pay monthly dividends.

@davidschlosser3946 7 ай бұрын

@MarkRoussinCPA I am trying to invest right now but don't have much money to spread very far. I hear that you should diversify your portfolio, but the compounding interest doesn't build a lot if you spread only a little money amongst a ton of stocks. Should I just pick a couple stocks to begin with and aim for a certain dividend goal and then add a stock here or there, or should I continue to keep spreading the money out?

@MarkRoussinCPA 7 ай бұрын

I like to start by building a foundation with ETFs then I sprinkle individual stocks

@davidschlosser3946 7 ай бұрын

@@MarkRoussinCPA I haven't invested in any ETF's yet. I thought there was a minimum investment amount required to get into them. I know when I first started investing, mutual funds required something like a $5000 deposit. I'll have to check the investment company and see. Since I've been pretty poor, I've only been able to start by buying a few shares here and there to try and build dividends to help me out.

@abhipatil4844 Жыл бұрын

Good one

@eduardocolmenares532 Жыл бұрын

What a good video. It would be great to do that simulation with SCHD, SPYD, JEPI and others ETFs

@MarkRoussinCPA Жыл бұрын

Thank you!

@TT-oy2kw Жыл бұрын

Great video, Mark!! ❤❤. Thank you

@MarkRoussinCPA Жыл бұрын

Thank you for watching!

@Rob_G716 Жыл бұрын

Great vid! As always Mark. It’s always great to hear your professional opinion in the KZfaq space, especially compared to the countless yahoo’s on KZfaq that honestly have little to no clue what they’re talking about. Your spreadsheet breakdown is a great visual, It’s like when I send someone a loan amortization schedule when discussing real estate “oh wow! I see it now” Keep the great content coming !!! 😎🤙🏼

@MarkRoussinCPA Жыл бұрын

Thank you, really appreciate that!

@cannondalem600 Жыл бұрын

EXCELLENT video and well explained, I like the visual of how it's laid out on the spreadsheet. I sent link to my 20-something son to take advantage of the power of compounding and will likely send to my co-workers as well. Is this an excel spreadsheet you made, or can I find it online somewhere? Link?

@MarkRoussinCPA Жыл бұрын

Thank you!! I made it myself, let me see if I can get you a shareable link.

@MarkRoussinCPA Жыл бұрын

Here is the link. docs.google.com/spreadsheets/d/13kCvfmQHrKOd7A7_bOdu3qwW6oIufLgUfnRYMmgZ8eM/edit?usp=sharing

@cannondalem600 Жыл бұрын

@@MarkRoussinCPA Thank you, Sir@

@BettingHammer Жыл бұрын

was waiting for this one!

@chrisgallant2552 Жыл бұрын

Could you name the top 5 stocks that you personally believe will perform like home depot starting in 2023 where you would think they would be equivalent to this scenario?

@TJR82 Жыл бұрын

Good stuff but Berkshire doesn't re-invest dividends. Also that they don't pay dividends sucks SO much since lots of their gains come from dividends. They should pay like 100 $ for all shareholders as divs.

@DtlaDaisy Жыл бұрын

Hi Mark! New subscriber here👋🏽 thank you for this visual and explanation! Is this spreadsheet sold on your website as a downloadable template? I'm a beginner to dividend investing and would like to build my spreadsheets using your model here. Thanks!🙌🏽