Sunday 26 February 2012

How to build recurring dividend income

If one can generate 7% of dividend yield, for every S$1K, there will be S$70 produced.
If one can generate 7% of dividend yield, for every S$10K, there will be S$700 produced.
If one can generate 7% of dividend yield, for every S$100K, there will be S$7,000 produced.
If one can generate 7% of dividend yield, for every S$200K, there will be S$14,000 produced.

The trick lies in building up the principle amount invested. Once it reaches 6 digit, the return starts to get enormous and the snowballing momentum becomes unstoppable once the dividend itself gets reinvested. S$14K is close to 3 months bonus for many middle income folks out there! The power of simple compounding and that is before we even consider the effects of capital gain or future growth in dividends yield.

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