SDIP yields around ten percent, so in ten years time it could have return all your capital without compounding.

So it could achieve the holy grail of investing, in that it will produce income at a nil, zero,zilch, cost.

The income re-invested in the Snowball compounded at 7% will also be producing income.

As you can see SDIP is in profit of £1,067 of which dividends are £831.00.

Of course the market could take back all the profit, including the earned dividends but if the dividends are re-invested elsewhere in your Snowball the chances are reduced. This years dividends re-invested should produce further income of around £80.00

All baby steps.