Dividend Growth Investor: How Ronald Read Managed to Accumulate a Dividend Portfolio Worth $8 Million

Over an investment lifetime, there will be many bear markets. But over time, investing in great companies will allow an investor to build massive amounts of wealth.

With markets down and growth out of favor, there may be a resurgence in dividend-oriented investing. That style hasn’t gone away. More importantly, many investors have demonstrated that you can build massive wealth with dividend stocks. One such example is Ronald Read, a janitor who built an $8 million portfolio.

At the time of his death at the age of 92, he amassed over $8 million by investing 95 different blue-chip companies. He was also earning close to $20,000 in monthly dividend income. Notably absent from this portfolio? Tech stocks.

The secret is fairly obvious. By investing in companies with a history of growing their dividends over time, and by being patient, Read was able to compound his wealth.

By living below his means, he was able to accumulate enough capital to keep buying shares of great companies. And he reinvested those growing dividends for decades, to further the compounding process.

This strategy is timeless. Now, with markets facing their largest bear market in over a decade, dropping stock prices are increasing dividend yields, even for companies growing their payouts now. This strategy works for those looking for current income, but will best benefit those looking for future income.

For the full story and a list of some of Read’s top stock holdings, click here.