How I earned 3 raises in a week

March toward $1,000,000: Week 29 (Feb. 4-8)

When was the last time you got a raise? End of last year, maybe? Middle of last year? Not at all last year?

As an employee, one a year isn’t too much to expect, but other than that raises are pretty few and far between. The good news, though, is that you can give yourself one whenever the heck you want as an investor.

As an employee, you’re working hard for someone else, which they compensate you for. As an investor, your money is working hard for you.

Anyway, I said I earned three raises last week, so I better pay off on the tease, huh. Here’s how the past week went in my Dividend Farm:

This week’s purchase: Microsoft

The first raise came when I picked up a share of Microsoft (MSFT) for $104.75. The added share increased my forward annual dividend income by $1.84. Not a huge raise, I’ll give you that, but it’s a raise.

The purchase bumped my position to 2.00419 shares which will spit out an estimated $3.69 in dividend income over the course of the next year. Microsoft is the type of company I don’t really do any research on – I’m not going to throw a bunch of numbers your way this time – I just buy shares whenever the mood strikes me … and the mood struck. I love the company, use the products and can sleep well at night owning it.

This week’s dividend: Lowe’s

If you thought the first raise was something else, wait until you hear about this next one. I earned a $0.48 dividend for the one share of Lowe’s (LOW) I own – a dividend which, once reinvested, added another 0.0049 shares to my position. That fractional share in turn added a whopping $0.01 to my forward annual income. How’s that for a raise?

This week’s dividend raise: Lear

My third raise came from Lear (LEA). The company, which has been boosting its dividend for 7 straight years, did it again earlier this month. It increased its quarterly payout per share from $0.70 to $0.75 … a boost of just more than 7%. Considering I own just over 2 shares, the raise added an extra $0.40 or so to my annual dividend income.

Three raises in a week. See, told ya. I know none of them really move the meter, but they give you an idea of what dividend growth investing is all about. The raises are small now, but they’ll only grow as the compounding starts to do its thing.

March on!

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