When Does the Dividend Snowball Actually Start? CAGR Explained

When do reinvested dividends start to make a visible difference? In this Dividend Lantern episode, Mike separates new contributions, dividend reinvestment, and dividend-per-share growth. We work through clearly hypothetical numbers, explain CAGR, and show why forward dividend income is different from total return. The examples are educational illustrations, not historical returns or personal holdings. Dividends can be cut and share prices can fall. Primary sources: Investor.gov, compounding: https://www.investor.gov/introduction... Investor.gov, dollar-cost averaging: https://www.investor.gov/introduction... FINRA, money-weighted versus time-weighted return (notice 20-21, note 17): https://www.finra.org/sites/default/f... S&P DJI, price versus total-return methodology: https://www.spglobal.com/spdji/en/res... IRS, reinvested dividends: https://www.irs.gov/faqs/capital-gain... Investor.gov, investment fees: https://www.investor.gov/introduction... Which calculation should we do next: the savings/dividend crossover, or money-weighted return versus CAGR? #DividendInvesting #DividendGrowth #CAGR Chapters: 0:00 Cold open — a seductive image 0:47 The three engines 2:28 The crossover point 4:26 Dividend growth is different 6:03 CAGR without the fog 8:40 A simple dividend model 10:44 When the curve can reverse 12:12 Is a higher yield a faster snowball? 13:15 Reinvest or spend? 14:23 A practical three-line dashboard 15:24 Closing