11-03-2013, 08:18 AM
We all need some means of seeing progress in our investing. Most people measure the market value of their portfolio compared to some goal, which I frequently find more depressing than supportive. Many dividend growth investors use yield on cost, which can prevent people from selling a stock when they should.
I propose another measure of progress: reinvested dividends as a percentage of the total invested in a year. This measure isn't actionable, but does provide psychological support for continued dividend growth investment.
By this measure, 15% of my annual investments are reinvested dividends.
I propose another measure of progress: reinvested dividends as a percentage of the total invested in a year. This measure isn't actionable, but does provide psychological support for continued dividend growth investment.
By this measure, 15% of my annual investments are reinvested dividends.