GETTING RICH WITH DIVIDENDS (the miracle of compound interest)

Today's video is about #getting #rich with compound interest and #dividend growth investing. Historically, I have modeled a bit more conservatively on my channel. For example, I like to calculate simple yield on cost with no dividends reinvested in terms of projecting future cash flow. However, many subscribers have pointed out that they'd like to understand more about the power of reinvesting dividends (and the miracle of compound interest). Today's model is an aggressive one. It shows the power of dividend growth investing with dividends reinvesting. Learn how it could be possible to yield over 400% on cost (on dividends alone)!

Here's the spreadsheet used in today's video:
http://www.ppcian.com/ppc-ian-dividen...

Timestamps:
0:00 Intro
0:33 I never plan to sell stock
1:30 Yield on cost with reinvested dividends intro
2:30 Example from my personal stock portfolio, Realty Income (O)
8:30 Review of simple yield on cost (dividends not reinvested)
11:13 How to compute yield on cost with dividends reinvested (how to really get rich with dividend investing)
23:20 As a dividend investor, there are four levers that can make your rich

I start with an example from my personal stock portfolio, Realty Income (ticker O). I purchased my first tranche of O in 2013 at $42.83. O is now trading at $72.48. Who said that dividends stocks are not also growth stocks? Anyways, my simple yield on cost on my 1st tranche is 6.33%. I calculate that simple yield on cost by just looking at the dividend growth over the years. I assume my dividends as they come in, however, are spent. By contrast, I also share a scenario that shows my all yield on cost with dividends reinvested. I'm already at 8.08%. That's the magic of reinvesting dividends. (NOTE: my 8.08% is not just on tranche one but all tranches, as it was easier to calculate that way.)

Next, I do a quick refresh of my recent video exploring yield on cost for DIS, MMM, and DUK over time. You can check out that video here:
   • DIVIDEND INVESTING EXPLAINED  

Last, I jump into my model on how to calculate yield on cost with dividends reinvested! There is a lot of math behind this model, and I want to make sure to explain it in detail. Concepts covered:
1) Capital Invested
2) Share price growth
3) Dividend growth
4) Dividend reinvestment
5) Yield on cost with dividends reinvested

After 30 years, simple yield on cost for MMM is 80.7%. However, with dividends reinvested, YOC jumps to a staggering 415.31%.

Here I am on Twitter:   / ianlopuch  

Here's the monthly dividend company that I own:    • The Monthly DIVIDEND STOCK That I Own In M...  

I think a stock market crash is on the horizon:    • THE UPCOMING STOCK MARKET CRASH & Subscrib...  

Here's how to calculate simple yield on cost (check video description for a free spreadsheet model too):    • DIVIDEND INVESTING EXPLAINED  

Here's my complete dividend stock portfolio:    • MY DIVIDEND STOCK PORTFOLIO REVEALED (all ...  

Here's how I'm beating the S&P 500:    • I'M BEATING THE S&P 500 WITH MY DIVIDEND S...  

DISCLOSURE: I am long Realty Income (O), 3M (MMM), and Duke (DUK). I own these stocks in my stock portfolio. My kids are long Disney (DIS).

DISCLAIMER: All information and data on my YouTube Channel, blog, email newsletters, white papers, Excel files, and other materials is solely for informational purposes. I make no representations as to the accuracy, completeness, suitability or validity of any information. I will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided AS IS with no warranties, and confers no rights. I will not be responsible for the accuracy of material that is linked on this site.

Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.

COPYRIGHT: All PPC Ian videos, Excel files, guides, and other content are (c) Copyright IJL Productions LLC. PPC Ian is a registered trademark (tm) of IJL Productions LLC