Compound Interest

Many financial bloggers talk about compound interest. 

Many dividend investors talk about compound interest. 

Here's why - 

I will be starting the 2017 year with ~$2,200 in my Robinhood Portfolio. Throughout the year, I will receive dividends, let's assume ~3.5%.

Below is a chart of my projected portfolio amount if I don't add any more money out of my pocket, and I buy stocks only with the dividends I receive.

Year	Starting Portfolio Amount	Div Yield %	Dividends
2017	$2,200	3.50%	$77
2018	$2,277	3.50%	$80
2019	$2,357	3.50%	$82
2020	$2,439	3.50%	$85
2021	$2,525	3.50%	$88
2022	$2,613	3.50%	$91

Now, if I add $26/week every week (like I've been doing), here's an updated table. 

Year	Starting Portfolio Amount	Div Yield %	Dividends
2017	$2,200	3.50%	$77
2018	$3,629	3.50%	$127
2019	$5,108	3.50%	$179
2020	$6,639	3.50%	$232
2021	$8,223	3.50%	$288
2022	$9,863	3.50%	$345

Obviously these tables make a lot of assumptions. I assume it will be a constant 3.5% dividend yield. I assume my portfolio value won't go up or down with the market. BUT, I think the tables make their point. If I keep adding money from my own pocket to buy dividend stocks, along with dividend money, the compound interest will benefit my portfolio! 

Signed,

Mitch