A compounding savings plan is a pillar of personal finance. Every week the Savings Spotlight highlights one investment asset that can ramp up the returns on your plan.
This week’s spotlight: WKLY, SoFi’s dividend paying ETF.
Here’s the big picture in SoFi’s own words:
And here’s our take:
Build a classic income stream
Dividend investing is one of the oldest and most reliable ways to generate a growing income stream.
Look no further than Warren Buffett for its most successful champion. Through a lifetime of dividend investing, Warren Buffett has built himself an unimaginable source of income; this year he is set to collect over $2.5 billion in dividend checks!
And while $2 billion might be a stretch for you (for now 😀), there’s no reason a few thousand over the next 5-10 years should be. It all comes down to time and compound interest.
Start taking advantage of compound interest
Most dividend investors look for the highest yielding stocks to build their dividend portfolios. Higher yields mean higher reinvestments which are the drivers of compounding growth.
But the frequency of reinvestment also matters, and in that domain, WKLY shines. Its 3.27% yield might not blow income investors away, but the opportunity to reinvest those yields on a weekly basis should.
You can buy a share of WKLY today for ~$46 and receive your first dividend on Thursday.
Reinvest that dividend, and you’ve kickstarted the process towards a modest compounding stream of income.
How to accelerate your dividend returns
If you were hoping for more accelerated returns, there’s a number of high yield dividend stocks you can add to your portfolio in addition to WKLY.
Magnifi’s powerful AI investing assistant can help you spot these high-yield dividend powerhouses!
For example, ask your AI investing assistant: What are some high yield dividend stocks?
Share what you find with us!