What If You Can Live Off Your Dividends?

I’ve spent part of my day studying General Mills (sexy, I know) because the company sells products like flour and Cheerios that are immediately recognized as indispensable. The stock never seems particularly cheap, and no one ever talks about buying it despite (1) the easy-to-understand business model, (2) an uninterrupted dividend history dating back to the 1890s, and (3) a track record of compounding at 12.5% annually over the past three decades, leaving behind in the dust almost every hedge fund that exists in America net of fees.

Someone who has steadily been committing to buying $300 shares of General Mills every month since 1983 would find himself in the interesting position of owning 22,200 shares of the cereal and breakfast product giant (of course, setting $300 in 1983 would be the equivalent of setting aside $700 today, but hopefully someone in real life would be able to increase their … Read the rest of this article!