Classroom Stock Portfolio: +20.38% Return Per Year (11 Best Dividend-Growth Stocks) - Week 119

[@erikm9768]

11:30 I dont understand "dividend investors", once your dividend income reaches your annual expenses you start using these profit streams? Then from that point on however, theres no more compounding to your portfolio though?

[@RexJacobsen]

If one's portfolio provides enough income to cover one's expense, the investor could choose to retire and live off of that income stream. But the portfolio would still continue to grow over the long term due to capital appreciation since the stocks would not be sold.

[@erikm9768]

Nice job, but good luck getting 20% annualized on stocks like Microsoft or Apple the next couple of years :)

[@RexJacobsen]

You're right, Erik, it would be unrealistic to assume the portfolio would continue returns of 20%+ per year since historically stocks average 10% a year. But it's a great start so far!