Part 3/9:
Years ago, Jake first encountered the Financial Independence, Retire Early (FIRE) movement, which encourages individuals to accumulate enough savings to retire significantly earlier than traditional norms. With this realization, he compared the 4% rule to dividend investing, seeking a strategy that fit his financial goals and personal values.
Comparing Historical Performance: S&P 500 Dividends vs. Price Growth
Jake begins his analysis by comparing the historical performance of the S&P 500’s dividend growth to its overall price increase since 1957. While both metrics have shown growth, he notes that the share price has grown significantly more—approximately 11,000% compared to nearly 4,000% for dividends.