Why Dividends Now?

Why We Are Confident

Recent Research on
Dividends

The Power of Compounding

Why do we use this approach? Simply put, it is to harness the power of compounding to maximize investment results. The effect on total investment return as a result of dividends increasing every year by a minimum of 10% is significant. For example, 10% compounded annually doubles your income in just over 7 years. 15% compounded annually doubles in 5 years, and 20% doubles in about 3 1/2 years.

• The power of compounding is eye opening.
  
  
• 10% - Ten percent compounded annually doubles your income in just over seven years, and results in a 157% increase (2.57 times your initial investment) in income by year 10.
  
  
• 15% - Fifteen percent compounded annually doubles in five years.
  
  
• 20% - Twenty percent compounded annually doubles in approximately three-and-a-half years, and results in a 415% dividend increase (5.15 times your initial investment) in 10 years.
  
  
• What’s more, these increases in income are often accompanied by an increase in the stock’s market value, as well.