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Good morning,
High yield securities are thought of primarily as income generators. Less attention is paid to their ability to compound income over time.
There are three drivers for compounding income from any investment:
- Reinvesting dividends
- Dividend growth on a per share basis
- The time over which the investment is held
Reinvesting Dividends
The first compounding driver – reinvesting dividends – is especially powerful with high-yield securities. Higher yields mean that you can compound your income stream faster by reinvesting dividends.
If all dividends from a 4.0% yielding stock are reinvested, you will compound your income stream at approximately 4.0% annually.
And since high yield securities, on average, don’t have particularly high growth rates, you can “create” income growth by reinvesting dividends until you need them for personal finance reasons.
One downside to creating compounding through reinvesting dividends is that dividends are taxable. This means that following a dividend reinvesting strategy in a tax-advantaged retirement account typically yields better results than a non-taxable account.
With that said, dividend taxes do not come close to offsetting the enormous long-term compounding benefits of reinvesting dividends.
Dividend Growth On A Per Share Basis
There are many high yield securities out there. But it’s non as common for a high-yield security to pay rising dividends on a per share basis over time. When this happens, your income compounds, even when you don’t reinvest dividends.
But if you do reinvest dividends, you get compounding benefits from both owning more shares (through reinvesting dividends), and receiving more income from each share (from dividend growth on a per share basis).
Note: The May 2026 Sure Dividend High Yield Newsletter Top 10 has an average streak of 37 years of consecutive dividend increases, making future dividend growth very likely in aggregate.
Investment Time
Finally, and less discussed, is the time over which you hold your investment.
Time invested is central to compounding.
You cannot generate significant compounding of income from any one investment without holding periods measured in years.
Too often, investors buy based on expectations for the next quarter (or sometimes even next few days). Time invested matters a great deal.
- Compounding dividend income at 8.0% annually means you only get an extra $0.08 on the dollar in 1 year.
- But compounding for 10 years means you get an additional $1.16 for every original dollar of income.
Longer holding periods also benefit investors by reducing the frequency of capital gains tax payments (in taxable accounts).
This means you get to let money you would’ve paid as capital gains taxes continue to compound for you until you elect to sell.
And that's where the Sure Dividend High Yield Newsletter (SDHY) comes in.
Note: We will publish the new June 2026 edition of the Sure Dividend High Yield Newsletter this Sunday morning!
About The Sure Dividend High Yield Newsletter
The Sure Dividend High Yield Newsletter analyzes our Top 10 highest yielding dividend growth stock buys each month.
The SDHY Newsletter:
- Always publishes on the 2nd Sunday of the month
- Initial edition went live in November of 2016
- Is currently trusted by more than 4,000 investors
And the SDHY Newsletter has everything you need to build your high yield dividend growth portfolio, including:
- Our Top 10 high yield dividend growth stock buys
- Actionable sell recommendations
(As needed)
- A portfolio building guide
- And much more
Our Top 10 buys each month have:
- Dividend yields of at least 3x the S&P 500's
(Yields of ~3.2% or higher currently)
- At least 5 years of consecutive annual dividend increases (And typically much longer).
- Trading at fair or better prices
(Always trading below fair value).
“I have been a self-directed investor since 1980, and I think your Sure Retirement newsletter is the best thing I’ve seen! Thanks so much for your diligence.”
– Sure Dividend High Yield Newsletter member
(Formerly the Sure Retirement Newsletter)
These are our top 1.1% high yield dividend growth stock buys from our 900+ stock Sure Analysis Research Database.
Our ~15 person analyst team puts in the work to find the best high yield growth stocks for our members by analyzing 900+ securities every quarter.
This is real analysis by our team, not a quick computer screen or automated AI guesswork.
“The person that turns over the most rocks wins the game. And that’s always been my investing philosophy.”
– Peter Lynch
And we don't stop after recommending a security...
We provide actionable sell recommendations as needed as well.
Although our goal is to buy and hold forever so long as dividends keep growing.
Note: Click here for a past edition of the SDHY Newsletter.
Why Now Is The Best Time To Get The SDHY Newsletter
Now is the best time to get the SDHY Newsletter because:
- This Sunday morning we will publish the new June 2026 edition the SDHY Newsletter.
- We are currently running a deep discount promotion to celebrate the upcoming publication of the new June 2026 edition!
And this is BIG because:
- The SDHY Newsletter annual plan will never be this cheap again
It's normally $49/month, which comes to $588 annually. But you can join now for just $87/year.
- Your price will never increase after joining
It will stay at $87/year for as long as you are a member with absolutely no tricks, gimmicks, or gotchas.
- SDHY Annual Plan Enrollment Closing
We are closing annual plan enrollment (and 3-year plan enrollment) with the closing of this special deep discount offer.
- You get a 60-day full refund period
There's no risk in trying the SDHY Newsletter because you get a 60-day full refund period on your first payment. There are no hoops to jump through; just email us at support@suredividend.com.
- Hard Deadline at 8:00 PM CT on June 15th, 2026
Once this deep discount promotion ends, it's gone forever with absolutely no exceptions.
You will instantly receive the current May 2026 edition when you join below, and be on the list to get the new June 2026 edition when we publish it this Sunday morning.
To your compounding dividend income,
Ben Reynolds
Founder, Sure Dividend
P.S. The new June 2026 edition of the Sure Dividend High Yield Newsletter goes live this Sunday morning! Click here to start your deeply discounted membership while it's still available.
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