Passive income earned from dividend shares is a great way of supplementing a salary. But by reinvesting the money for the long term, it’s possible to build transformational wealth.

Let me explain.

What I’m doing…

I own shares in MONY Group (LSE:MONY), the FTSE 250 tech business that helps households save money. In 2025, through its six brands, including MoneySuperMarket and MoneySavingExpert, it claimed it helped cut £2.8bn from people’s bills. This is a great selling point when it comes to marketing itself, but what interests me most is the group’s dividend.

Based on its 2025 payout of 12.63p, it’s currently (18 September) yielding 6.5%. If maintained, this means a £10,000 investment made today could produce £650 in dividends over the next 12 months.

It gets better…

But here’s the clever bit.

Instead of spending this cash on something non-essential, why not reinvest it in buying more shares? In doing so, income of £692 could be earned in year two. Repeat this for 25 years and the initial lump sum of £10,000 would be worth £48,277. That’s an incredible return for doing nothing, other than buying a few shares every year. No wonder passive income opportunities are so popular with investors.

Indeed, just imagine what sort of return could be achieved with a larger lump sum or from a regularly monthly investment in dividend shares. For example, an annual return of 6.5% on a £250 monthly investment would result in a portfolio worth £176,663.

As George Choy, the British author, once wrote: “Every pound is a seedling. Investing your seedlings to create a tree. Reinvest your seedlings to grow a forest.”

In my opinion, getting rich slowly is an appealing investment strategy.

Things to be aware of

Of course, we must be cautious. Dividends are paid out of earnings, which means they cannot be guaranteed. Also, shares can go down as well as up. Indeed, MONY Group’s business model – and its profit — might be impacted by the emergence of AI agents that could make it easier for consumers to compare prices across suppliers. The technology could also help low-cost challengers enter the market and disrupt more established players.

However, MONY Group is aware of the risks. It’s developed its own ChatGPT-based app that sits alongside its own MoneySuperMarket version. And last month, it launched a business account and financial management app aimed at the country’s 5.5m small businesses.  

Analysts appear optimistic. They’re forecasting its 2025 payout to increase by 4.6% to 13.21p in 2026. For 2027, they’re predicting 13.64p. If they’re right, the stock’s forward yield could rise to 7%. Earnings per share is expected to increase by 11.5% over the next two years.

My view

In my opinion, MONY Group has lots going for it, particularly its powerful brands. Specifcially, MoneySuperMarket remains the UK’s most recommended price comparison website. As well as this, MoneySavingExpert is the country’s third most popular news app, behind the BBC and Apple News. The group’s SuperSaveClub boasts 2.5m members.

This should help the group continue to grow its earnings – and its dividend – in line with forecasts. That’s why I reckon the stock could be considered by those looking for a high-yielding dividend share. In fact, MONY Group’s just one of many that I think are worth a closer look.

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James Beard owns shares in MONY Group plc.