The Power of Compounding
"Compound interest is the greatest
mathematical discovery of all time."
– commonly attributed to Albert Einstein –
The Rule of 72
For the last two years, the common stock of companies that Dividend Growth Advisors invested in has achieved an average dividend increase of over 18% per year. Using the Rule of 72, a formula used to calculate how long it takes to double your capital, an 18% annual increase of the dividend would take only 4 years to double that dividend.Investment results are determined by time, not by how much you invest:
72 ÷ Interest Rate Return = Number of Years It Takes to Double Your Capital
For example, an investment made at a current interest rate of 4% will double in 18 years. Ten percent compounded annually doubles your income in just over 7 years, 15% compounded annually doubles in 5 years, and 20% doubles in about 3½ years.
Past Performance is not a guarantee of future results. The Rule of 72 is theoretical, and results will vary based on investments and fluctuations in performance.





