I love Big macs! But now that I earn passive income from them, I love them even more! McDonald’s has published its quarterly results recently and declares a 0,81$ quarterly dividend!
I have spent the next following years studying rich people. Who were they? What did they do to become so rich?
What I found was quite surprising.
While some have inherited their fortune from their family or won lottery, many of them were people just like me at the beginning.
When I realized that I became very excited. If they could have started from my situation and become wealthy, then it meant I could probably do the same.
Their plan is simple. They have found a way to make growing passive income year after year. And they repeat the same actions again and again until they are financially free. It’s easy. You repeat the same actions again and again everyday at your day job. But the income goes to your boss!
I now do it for myself too! I save quite a bit of my salary on every paychecks (+/- 25%) and I invest it in dividend paying stocks that grow their dividends year after year at a rate above inflation. (I seek for ±8% growth)
This morning, one of my holdings has declared a nice quarterly dividend of 0,81$ per share. It’s McDonald’s, one of the best cash cow out there!
Since 1976, McDonald’s has increased its dividend every year at a rate of more than 20% annualized. That’s more than a 130,000% increase! Now that’s a huge big mac!
McDonald’s is part of a select list of stocks called the Dividend Aristocrats. To be on this list, a company has to have paid a growing dividend for more than 25 years in a row. That’s very impressive!
When I realized that such possibilities existed, I was shocked! How come no one ever told me that such thing was possible? I knew about dividends, but for me, dividends were a lost of my time… I was seeking for high and fast profits from grow stocks! But the true wealth comes from small but consistent increases every year! It takes some time for the compounded interest’s magic formula to deliver its true magic, but I now understand that it’s the only way for me to retire early.
Many companies like Exxon, Johnson & Johnson, Wal Mart, Procter & Gamble are cash cows for the dividend investors and I wish to own part of these great businesses over time.
What about you? Do you own dividend stocks? Are you happy with them? Have you purchased them at a good price?
[author] [author_image timthumb=’on’]http://quityourdayjob101.com/wp-content/uploads/2014/03/ID-10050051.jpg[/author_image] [author_info]Hi, my name is Allan. I’m the masked blogger. Like you I’m a modern slave, prisoner of a 9@5 job in Corporate America. They told us when we were young that we would live in a society of leisure and that technology would permit us to work only a couple of hours per day. But we live in a society of stress and uncertainty. My situation could be a lot worse and I know it. So many humans are suffering on this planet. But a golden cage remains a cage anyway. At least, I have an escape plan. I will retire before 45 years old over my passive income. This is a dream that is so powerful that I will make sure it happens. To build my wealth, I mainly invest in undervalued dividend growth stocks. [/author_info] [/author]
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