Dividend Meter > Compounding Stock Dividends for Financial Independence
Compounding Stock Dividends for Financial Independence
Welcome to the Dividend Meter – a journey of compounding stock dividends towards financial independence, and resource center for creating your own stock investment spreadsheet. Each month, we share transaction details of a real-life stock portfolio, including trades, dividend reinvestments, dividend increases, and dividend cuts.
Dividend Yield Theory
Management of the Dividend Meter portfolio is primarily guided by the “Dividend Yield Theory”. According to the Dividend Yield Theory, high quality dividend growth stocks tend to trade between a high and low yield pattern over time. The stock is considered undervalued when the dividend yield is high, and overvalued when the dividend yield is low. In addition to capturing the wealth-building effects of dividend increases and reinvestments, the Dividend Meter portfolio attempts to boost dividend compounding further by capitalizing on situations where an overvalued stock can be sold, and the proceeds invested in an undervalued security with a higher yield.
The Dividend Meter Spreadsheet
The Dividend Meter is a spreadsheet created in Google Sheets. When opened, it automatically imports current stock quotes and annual dividend figures. The spreadsheet calculates dividend yields and displays the total annual dividend income in a colorful gauge chart. In addition to displaying color-coded dividend increases or cuts, the Dividend Meter spreadsheet also provides buy and sell indicators based on the Dividend Yield Theory. See the current Dividend Meter portfolio spreadsheet.
The Dividend Meter is committed to donating 10% of any net income this website generates to charity.
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