This has been my experience since 2000. Market crashed and so did the value of my portfolio. My dividend income went up. Market started to recover and so did my portfolio. My dividend income went up. The market again crashed in 2008 and so did the value of my portfolio. My dividend income went up. The market recovered from 2008 and so did the value of my portfolio. My dividend income went up.
Since 2000 my income has increased by 109%. The median increase of my income is 7.8% per year. I still had interest bearing financial vehicles in 2000, so just looking at dividend increases only does not tell the whole story. (By the way my median dividend increase since 2000 was 11.5% per year.) My 5 and 10 year median dividend growth is 9.6% and 11.5% per year to the end of 2012.
I sort of practice buy and hold in order to have a portfolio producing dividends for me live off of. I have had no salary since I stopped working in 1999, so any purchases of stocks was using money from my portfolio income or because of a sale of a currently owned stock. I do some buying and selling.
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