This is a continuation of Another Source of Income published last week.
If you spend the dividends you receive from your stock portfolio your portfolio will grow but slowly. You are better off reinvesting any dividends received. It took me 11 years reinvesting my dividends to get to a portfolio of $100,000 and then another 11 years to have enough to retire on. My portfolio grew quite rapidly after I got to $100,000.
If you start a portfolio, it can be your raining day fund. Problems always come up and you will have far less stress if you knew you had some money to tie you over. When I was working my company announced they were going to downsize. This meant people would lose jobs. I was less stress than anyone else because I know that if the worse happened I my portfolio income to fall back on. It was not large at that point, but it could income if I lost my job and had trouble finding a new one.
The last thing to mention is that if you buy dividend growth stocks, you get compounding working for you.
On my other blog I wrote yesterday about TMX Group Ltd (TSX-X, OTC-TMXXF) ... learn more. Next, I will write Artis REIT (TSX-AX.UN, OTC-ARESF) ... learn more on Wednesday, July 18, 2018 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.