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.
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:
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%.
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.
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).
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