Income investing, especially when coupled with a dividend reinvestment strategy, is an effective way to generate income from and also grow a portfolio.

How to Earn 26.5% on $20,000


Boost Your Income from $1,400 to $5,299 in Just a Few Years

Even the younger generation is paying heed to the wisdom of diversifying with income investments. They are starting to realize that income investing, especially when coupled with a dividend reinvestment strategy, is an effective way to not just generate income from -- but also grow -- a portfolio.


The chart above shows your potential annual income stream assuming a $20,000 initial investment in stocks with an average yield of 7%. Thanks to the power of reinvested dividends and dividend growth, after 10 years your portfolio could be generating $5,299 in annual income -- that's +278.5% more income when compared to an investor who doesn't reinvest. In fact, it could be generating an effective yield of 26.5% based on your initial $20,000 investment.

If you have even a little bit more time on your investment horizon (or more money to invest, or additional dollars to invest each year), then the numbers only get better. And keep in mind that these are conservative estimates.

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