The Impact of the Dividend Growth Rate

Ah-ha!  An epiphany over my head came yesterday, a little after 7:00pm.  A few days ago, I showed Bert that I added a column to my portfolio spreadsheet that showed this year of 2014’s dividend growth rate for each stock.  One other column that I have in my spreadsheet, as well, is not just the weighting each stock has in my portfolio, but also the weight each stock has of income in my portfolio.  After adding in the dividend growth rate to my portfolio on each stock, I decided to weight each growth rate by mistakenly the weight it had in my portfolio via market value.  When talking with Bert yesterday, I realized I made that mistake and changed it to apply to the weight of income it had in my portfolio.  I began to think of what this tool meant, how it can be used and the actual impact it has on the path to financial freedom! dividend growth rate Continue reading