10 Years of Dividend Investing: What Actually Mattered Looking Back
Hit my 10-year anniversary of dividend investing this month. Some reflection on what actually moved the needle.
What mattered more than I expected:
Consistency over timing. My best years were when I invested every month regardless of market conditions. My worst decisions were waiting for dips.
Dividend reinvestment (DRIP). Boring but powerful. Automatically buying shares with every dividend payment compounds faster than you'd think.
Dividend increases. A 3% yielder growing dividends at 8% annually outperformed my 5% yielders with flat payouts. Growth matters.
Not selling. The stocks I held through volatility mostly recovered and kept paying. The ones I panic-sold... didn't get that chance.
What mattered less than I expected:
Finding "the best" stocks. Adequate stocks held consistently beat perfect stocks I never bought. Analysis paralysis cost me more than bad picks.
Yield optimization. Chasing the highest yields led to worse outcomes than accepting reasonable yields from quality companies.
Macro timing. I have no edge predicting interest rates, recessions, or elections. Neither do most people.
The numbers:
Started with $25,000. Now at $210,000 between contributions and growth. Annual dividends went from ~$750 to ~$7,200. I didn't beat the S&P 500 every year, but I sleep well and have tangible income.
What I'd tell 10-years-ago me:
Start earlier. Contribute more. Stress less. Let time do the work.
What's your biggest lesson from dividend investing so far?
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