After publishing my recent article on Johnson & Johnson, I wanted to perform my own case study on the reinvestment impact of Johnson & Johnson dividends over a decent stretch of time to isolate the wealth-creating effect of a small initial dividend amount that grows at a rate of 9-10% annually and gets reinvested along the way.
I chose 2002-2016 as the random measurement period because of a numerical quirk that makes the dividend growth rate seem more tangible. In 2002, the annual dividend was $0.80 per share. By 2016, the quarterly dividend had grown to $0.80 per share. There aren’t many places in Western Civilization where you can honestly quadruple your money through passive means in fourteen years (and if you know of any, feel free to share.)