Great article, Eli. This is a lesson I have learned over the 20 years of trying to educate myself. The most reliable, tried and true safe growth seems to be dividend growth investing. I love to follow the YOC, yield on cost, as a metric for success. This would be the yield on the original investment so I would be curious to see on your original MO investment in 1995, how much your annual dividend today is in terms of % div yield.That original investment of 460 shares at 25 would be approximately $11500. And today with 10000 shares at 75, that is a balance of around $750000, and a dividend yield of 7% produces a yearly deposit of $52500. So the YOC on this is a cool 450%. EVERY YEAR. And it will probably grow from there too. Now put that in an infographic for the visual learners to see.
Let me correct that. Yield today is 5.86%. Original purchase 416 shares at 24. Now 10340 shares at 74. Original purchase investment is $10000. Present balance is 765160. Annual check is $44838. Yield on cost is 448% annually. I can live with that.
I have another one. My brother bought Fidelity Contrafund in 1995, $45000 worth. He forgot he had it 30 years. When he looked it up it was now $1,700,000. All DRIP and modest growth over time. His 2.5% dividend today generates $42500 annually. That is a yield of 94% annually on the original investment.
Great article, Eli. This is a lesson I have learned over the 20 years of trying to educate myself. The most reliable, tried and true safe growth seems to be dividend growth investing. I love to follow the YOC, yield on cost, as a metric for success. This would be the yield on the original investment so I would be curious to see on your original MO investment in 1995, how much your annual dividend today is in terms of % div yield.That original investment of 460 shares at 25 would be approximately $11500. And today with 10000 shares at 75, that is a balance of around $750000, and a dividend yield of 7% produces a yearly deposit of $52500. So the YOC on this is a cool 450%. EVERY YEAR. And it will probably grow from there too. Now put that in an infographic for the visual learners to see.
Excellent article!
Let me correct that. Yield today is 5.86%. Original purchase 416 shares at 24. Now 10340 shares at 74. Original purchase investment is $10000. Present balance is 765160. Annual check is $44838. Yield on cost is 448% annually. I can live with that.
I have another one. My brother bought Fidelity Contrafund in 1995, $45000 worth. He forgot he had it 30 years. When he looked it up it was now $1,700,000. All DRIP and modest growth over time. His 2.5% dividend today generates $42500 annually. That is a yield of 94% annually on the original investment.