## Wednesday, July 22, 2015

### Dividend Income Growth

Today I want to talk samples of what dividend growth can do for you. The problem with doing straight calculations is that life is messier than such calculations, but in another post I will talk about my actual experience.

What I will illustrate is 6 different scenarios, 3 with higher dividends and 3 with lower dividends and all with different dividend growth rates. I am basing these scenarios on some actual performance of stocks I own. The scenarios are as shown below with the names of stocks which matched in the past these sorts of original dividends and dividend growth rates.

In all these scenarios, you have invested \$10,000 at \$10 a share for a 1,000 shares of each stock. In the first table I am showing what dividends you would receive in the first year of holding these stocks. I have highlighted the stocks with the highest and lowest initial yearly dividend payment.

# Similar Ori Yield Div Growth Income
1 RY 4.70% 11.00% \$520.00
2 BMO 6.70% 6.30% \$710.00
3 RIO.UN 7.60% 3.10% \$780.00
4 ATD.B 0.80% 15.30% \$90.00
5 SAP 2.20% 11.80% \$250.00
6 SNC 1.90% 22.00% \$230.00

In year 5 the following chart shows what you would be receiving from each stock. I have highlighted what stocks would be producing the most and the least in dividend income.

# Similar Ori Yield Div Growth Income
1 RY 4.70% 11.00% \$790.00
2 BMO 6.70% 6.30% \$900.00
3 RIO.UN 7.60% 3.10% \$880.00
4 ATD.B 0.80% 15.30% \$160.00
5 SAP 2.20% 11.80% \$390.00
6 SNC 1.90% 22.00% \$500.00

In year 10 the following chart shows what you would be receiving from each stock. I have highlighted what stocks would be producing the most and the least in dividend income.

# Similar Ori Yield Div Growth Income
1 RY 4.70% 11.00% \$1,340.00
2 BMO 6.70% 6.30% \$1,220.00
3 RIO.UN 7.60% 3.10% \$1,030.00
4 ATD.B 0.80% 15.30% \$320.00
5 SAP 2.20% 11.80% \$680.00
6 SNC 1.90% 22.00% \$1,340.00

In year 15 the following chart shows what you would be receiving from each stock. I have highlighted what stocks would be producing the most and the least in dividend income.

# Similar Ori Yield Div Growth Income
1 RY 4.70% 11.00% \$2,250.00
2 BMO 6.70% 6.30% \$1,660.00
3 RIO.UN 7.60% 3.10% \$1,030.00
4 ATD.B 0.80% 15.30% \$670.00
5 SAP 2.20% 11.80% \$1,190.00
6 SNC 1.90% 22.00% \$3,610.00

In year 20 the following chart shows what you would be receiving from each stock. I have highlighted what stocks would be producing the most and the least in dividend income.

# Similar Ori Yield Div Growth Income
1 RY 4.70% 11.00% \$3,810.00
2 BMO 6.70% 6.30% \$2,250.00
3 RIO.UN 7.60% 3.10% \$1,390.00
4 ATD.B 0.80% 15.30% \$1,370.00
5 SAP 2.20% 11.80% \$2,090.00
6 SNC 1.90% 22.00% \$9,750.00

See the full spreadsheet here.

On my other blog I am today writing about Inter Pipeline Ltd. (TSX-IPL, OTC-IPPLF) ... continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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