Investing

How do you build wealth?

By Kanwal Sarai
Categories ▾

You build wealth one stock at a time. In this case you grow your investment 373% with just one stock. Then you continue to hold the stock for its growing income.

Lowe’s was founded in 1964 and operates as a home improvement company in the United States, Canada, and Mexico. It operates 2,365 home improvement and hardware stores, and has 190,000 employees.

Dividends Continue to Grow

In December 2007, Lowe’s stock was trading at $22.62 per share and the dividend was $0.18/share. Since then the dividend has increased every year and today it is $1.64/share. A Simply Investing student of mine purchased 220 shares in 2007 for a total investment of $4976.40. Here’s a look at the dividend growth since 2007:

Year Dividend Shares Dividends Earned
2007 $0.18 220 $39.60
2008 $0.29 220 $63.80
2009 $0.34 220 $74.80
2010 $0.36 220 $79.20
2011 $0.42 220 $92.40
2012 $0.53 220 $116.60
2013 $0.62 220 $136.40
2014 $0.70 220 $154.00
2015 $0.87 220 $191.40
2016 $1.07 220 $235.40
2017 $1.64 220 $360.80
Total $1,544.40

Over 373% Growth

As you can see my student has earned $1544.40 in dividends just from owning Lowe’s stock. Today the share price has grown to $77.49. Including dividends, the initial $4976.40 investment has grown to $18,592.20 this represents a return of 373.6%.

Dividends Still Growing

More importantly my student continues to earn $360.80 annually in dividends from his $4976.40 investment, this represents a return of 7.25%. If history is any indication (Lowe’s has had 54 years of consecutive dividend increases) this 7.25% will continue to grow as Lowe’s continues to increase their dividends.

Getting Started

You can simply build wealth one stock at a time, focus on acquiring quality stocks when they are undervalued. We’re here to help teach you how to find these stocks (with our online course), or provide you with a monthly list of quality undervalued stocks (with our SI Report).

Did you enjoy reading this article? If so, I encourage you to sign up for my newsletter and have these articles delivered via e-mail once a month…and it’s free!

Showing 4 comments
  • MR. ROBERTO ASENCIO
    Reply

    Do hoy hace York course in spanish?

    • Kanwal Sarai
      Reply

      Unfortunately my Course and Report is only available in English in right now.

  • MR. ROBERTO ASENCIO
    Reply

    El curso lo tienes en Espanol

    • Kanwal Sarai
      Reply

      El curso no está disponible en español.

Leave a Comment

Start typing and press Enter to search