Buy-and-hold investors get more bang for their buck when they select
growth stocks that pay reliable, increasing dividends and then reinvest
them. Small, but consistent, increases in quarterly dividends add up to
large dividend yields (buy price remains constant and dividends increase)
over time.
And many years of price appreciation for a stock and the extra shares
that you purchase with dividend reinvestment really add up to increase
your total return.
Consider these five well-known consumer stocks for your dividend-reinvestment
portfolio. Notice how their dividends have increased in ten years.
| Five
Great Dividend Reinvestment Stocks |
| Stock |
Symbol |
Dividend 11/1997 |
Dividend 11/2007 |
Dividend Increase
|
| Clorox |
|
$0.16 |
$0.40 |
150% |
| Colgate-Palmolive |
|
$0.1375 |
$0.36 |
162% |
| Pepsico |
|
$0.125 |
$0.375 |
200% |
| Procter & Gamble |
|
$0.12625 |
$0.35 |
177% |
| Wrigley Company |
|
$0.076 |
$0.29 |
282% |
| Dividend data from www.finance.yahoo.com
as of November 26, 2007. |
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