How to Become a Millionaire in the Stock Market

Photo by Lukas on

If you want to get rich quick then this is not for you. This post will be comparing if dividend investing or is better then the average return of 7% from a growth investing. If you put 1000 a month in a dividend stock at a 3.5% yield , 2% inflation and 5% growth of dividend and a share appreciation of 6%. These numbers will make you a millionaire in 30 years ( keep in mind these numbers are modest ).

If you put 1000 dollars in a growth stock that grows 8% with 2% inflation . These numbers make you a millionaire in 33 years, growth loses slightly. If you were to keep going with the dividend and growth with the same numbers for 5 more years. Then dividend investing turns into 1,442,695. While growth investing turns out to be 1,140,458. This proves that if you are not a investor getting high above average returns, then dividend investing is better.

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