Increasing Income: A Raise Every Year

Whether you believe we are still in a recession or are finally recovering, chances are your employer has been tight with the budget over the last several years. As such, pay raises were hard to come by if not non-existent. Even if you are getting a raise now, those years without one are missed opportunities to increase your wealth. Consider as well that you were losing ground to inflation.

It adds up

While you may not be able to convince your boss to give you the raise you want you can continue to increase your income year after year. I do so by investing in dividend growth stocks.

Stocks of companies that have a history of raising their dividend every year, and are likely to continue to do so, afford me the opportunity of getting that raise regardless of employment circumstances.

A portfolio of stocks that raise their dividend 5%  or 10% a year add up over the long haul. Over the last several years some of the stocks I hold have even raised their dividend 15-20%. When is the last time you saw a pay raise like that.

That's real income that can be used for whatever you want, home improvements, vacations, a child's college expenses, or to buy more dividend growth stocks.

While there is no guarantee that a stock will always raise it's dividend they are many that have done so for years, even decades. Proper due diligence can help you find the right place to invest your money.

Accumulated dividends = Vacation sunset

I like the peace of mind knowing that I can look forward to years of  annual "pay raises" through increasing dividends and I can enjoy the opportunities that extra "pay" affords.

The opinions presented here are mine and not meant as financial advice or a recommendation to purchase a specific investment. Do your own due diligence. Pictures are mine.

More thoughts and ramblings on twitter @MattBellWrites