The Promised Land of Dividend Investing

Sometime in the past twelve months, Realty Income did it. Since becoming a publicly traded company three and a half decades ago, every dollar that you invested into Realty Income back then would be paying you $1.00 in annual dividend income this year. In the next five years, the dividends alone should give you more than 5x your initial investment. That is what can happen when you buy an ownership stake in a business that relentlessly churns out cash, and then you allow it to keep doing its thing while you grow older.

For those of you who are curious about yield-on-cost, here is what the data looks like for thirty-year investments in the following companies, without any dividend reinvestment:

If you bought Coca-Cola in 1983, your $1000 would have grown into $74,000. You’d have $2,125 in annual dividends coming your way. Basically, you’d be looking at a dividend yield-on-cost … Read the rest of this article!