The ultimate goal of dividend growth investing is to create a reliable and consistently increasing stream of passive income through dividends, while also building long-term wealth through capital appreciation. This strategy aims to achieve financial security and independence by regularly investing in dividend-paying companies that demonstrate a strong track record of increasing their dividend payments over time and then letting dividend raises and re-investment lift the dividend income to a level where it covers

Key Objectives

1. Financial Independence: By generating a growing income stream from dividends, investors can achieve financial independence once their expenses are fully covered by the dividends generated by the portfolio.
2. Inflation Protection: Dividend growth investing can provide a sustainable source of income throughout retirement. As long as organic dividend growth outpaces inflation, an investors lifestyle is protected from price increases.
3. Wealth Accumulation: The combination of growing dividend income, re-invested dividends and potential capital appreciation allows investors to accumulate wealth over time, providing a solid financial foundation for potentially generations to come. As no shares need to be sold to realise an investment return, the whole portfolio can be passed down to future generations fully intact.

Overall, the ultimate goal of dividend growth investing is to create a financially secure future through a portfolio of carefully selected, high-quality dividend-paying stocks that consistently increase their dividend payments over time.