Google Inc (GOOG): My Secret To Lasting Dividend Income

That’s why my $200,000 real-money portfolio for The Daily Paycheck always reinvests dividends. I know it’s tempting to take the cash — and I know that many readers use regular dividends to fund their daily expenses. But I also know that a little patience will only lead to larger paychecks.

There is a little trick you can use to make the entire process go a little faster. If you look at my chart above, you’ll notice that the tallest column (representing the most income) is “cheating” a little.

You see, it represents your income if you reinvest… and your investment sees +5% annual dividend growth. Investing — and then reinvesting — in stocks with rising dividend payments essentially puts your income growth into overdrive.

But if you have a portfolio full of stocks with steadily rising payments, it also means you’re costing yourself even more if you don’t reinvest your payments. Keep that in mind the next time you’re checking up on your income portfolio.

Warren Buffett’s Top 5 Stocks Buffett’s firm, Berkshire Hathaway, holds dozens of stocks. But these five make up 75% of its portfolio… worth $65 billion. Click here to get Buffett’s top 5 stocks plus his 16 latest buys, FREE.

.