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Dividend Growth Birthday!
#1
My dividend growth portfolio turned 5 years old last week! I happened to notice that I bought my very first shares in an individual company on November 13, 2008, just over 5 years ago. Where does the time go?

My very first buy ever was 200 shares of MO at a price of $16.84 per share. The annualized dividend at the time was $1.28, giving those shares an initial yield of 7.60 percent. The markets were in turmoil then, but that huge yield gave me confidence to move – and I knew people weren’t going to stop smoking. Those 200 shares are now worth more than twice as much, and with an annualized dividend of $1.92 currently, they have a yield on cost of 11.4 percent.

I bought more in the next couple of weeks as the price fell even further, eventually accumulating 500 shares at an average price of $16.09. The initial yield on the last 100 shares I bought (at $14.65 per share) was 8.74 percent.

Those 500 shares cost me $8043, with commissions. With reinvesting, I now own 570 shares, worth $21,175 at today’s price. Better yet, that $8043 bought me an income stream that is now up to almost $1100 annually.

None of my other buys even comes close to that success, but they do follow in those footsteps nonetheless. Buy great companies that have a solid history of paying and increasing dividends at good prices. Then sit back and let them improve your life.
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#2
(11-21-2013, 07:32 PM)Kerim Wrote: Buy great companies that have a solid history of paying and increasing dividends at good prices. Then sit back and let them improve your life.

Very well said!
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#3
(11-21-2013, 07:32 PM)Kerim Wrote: My dividend growth portfolio turned 5 years old last week! I happened to notice that I bought my very first shares in an individual company on November 13, 2008, just over 5 years ago. Where does the time go?

My very first buy ever was 200 shares of MO at a price of $16.84 per share. The annualized dividend at the time was $1.28, giving those shares an initial yield of 7.60 percent. The markets were in turmoil then, but that huge yield gave me confidence to move – and I knew people weren’t going to stop smoking. Those 200 shares are now worth more than twice as much, and with an annualized dividend of $1.92 currently, they have a yield on cost of 11.4 percent.

I bought more in the next couple of weeks as the price fell even further, eventually accumulating 500 shares at an average price of $16.09. The initial yield on the last 100 shares I bought (at $14.65 per share) was 8.74 percent.

Those 500 shares cost me $8043, with commissions. With reinvesting, I now own 570 shares, worth $21,175 at today’s price. Better yet, that $8043 bought me an income stream that is now up to almost $1100 annually.

None of my other buys even comes close to that success, but they do follow in those footsteps nonetheless. Buy great companies that have a solid history of paying and increasing dividends at good prices. Then sit back and let them improve your life.

Awesome story. I've only been investing the DGI way since the end of Q1 of this year but I am already seeing the compounding work its magic in my portfolio. Looking forward to seeing where I sit 5 years in as well.

Thanks for sharing!
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#4
Great story. It's even better when you look at what the reinvested dividends have done for you. Just imagine how much you'll be making come 5 years from now.
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