There are potential benefits from investing long-term in a company that regularly increases its dividend. The longer you hold your shares, the higher the yield you will receive on your original investment and the greater the impact of the cumulative dividend effect.
The table below tells the story of how our long-term dividend investors have fared because of our ability, historically, to regularly increase the amount of the monthly dividend. This dividend success story is based on investors who collect their cash dividends rather than reinvesting them. Here’s what you can determine using the table below:
"Yield on Cost" illustrates the benefits of holding shares of a company that pays increasing dividends. The formula is simple—take the current dividend and divide it by the original price per share of your investment. Determine your current yield on cost with this simple calculator.
Current Annual Dividend:$2.175
Current Yield on Cost=
Past performance is not a reliable indicator of future performance. There is risk that dividends will not always increase, that dividends will not be declared according to past history, or that dividends will be declared at all.