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Earn MASSIVE Dividends With The Dividend Snowball Effect

My Largest Dividend Payment Ever, The Power of Dividend Reinvestment, Massive News, etc

July 15, 2024

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Happy Monday!

We have a great week of investing in front of us!

This past week, I got paid my largest dividend ever and released a video where I analyze how that happened & why it matters. Today, I’ll share some important concepts from that video. On top of this, I’ll provide some important news stories and recent dividend increases too.

Let’s do this!

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THE KEY STORY

How I Earn MASSIVE Dividends With The Dividend Snowball Effect

The Long-Term Strategy

The compounding effect of reinvesting earned dividends may take years to show significant results, but once the snowball effect is in motion, the results can be very impressive.

My Biggest Dividend Payment Ever

I'm excited to share a recent success from my own portfolio. This month, I received my largest ever dividend payment from an individual stock—$515.75. This payment came from my Altria stock, ticker symbol MO. I have been diligently reinvesting dividends over the years.

The Snowball Effect in Action

The snowball effect is a powerful phenomenon in dividend investing. Each time you reinvest dividends, you increase your ownership stake in the company, which in turn earns you more dividends to reinvest in the future. This virtuous cycle allows your investment to grow exponentially over time.

For instance, in my Altria position, I now hold 73.25 shares purely from reinvested dividends. This adds up to an additional $3,500 in value and $287.14 in annual dividend income. Without reinvesting dividends my MO stock investment would have a yield on cost of 9.14%. With the reinvested shares, my actual yield on cost increases to 10.58%.

The Power of Dividend Growth

Altria is not just a high-yield stock; it also demonstrates consistent dividend growth. With a three-year compound annual growth rate of 4.45%, Altria continues to increase its dividend payouts. This growth, coupled with dividend reinvestment, further accelerates the snowball effect.

Despite some challenges, such as the declining volume of cigarettes, Altria maintains a solid financial position. The company trades at a reasonable valuation, providing a reliable high yield with slow but steady growth in earnings per share.

Learn from investing legends.

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THE NEWS

History Book Moment Stuns The World

NOTABLE DIVIDEND INCREASES

Cummins, Enterprise Products Partners, The J. M. Smucker Company, etc

  • $CMI - Cummins declares $1.82/share quarterly dividend, 8.3% increase from prior dividend of $1.68.

  • $MMC - Marsh & McLennan declares $0.815/share quarterly dividend, 14.8% increase from prior dividend of $0.710.

  • $EPD - Enterprise Products Partners declares $0.525/share quarterly dividend, 1.9% increase from prior dividend of $0.515.

  • $ATR - AptarGroup declares $0.45/share quarterly dividend, 10% increase from prior dividend of $0.41.

  • $UNM - Unum declared $0.42/share quarterly dividend, 15.1% increase from prior dividend of $0.36.

  • $SJM - The J. M. Smucker Company declares $1.08/share quarterly dividend, 1.9% increase from prior dividend of $1.06.

Source: Dividend Data

SOMETHING FUN

I’ll Take Free Cash Flow…

Thanks for the read! Let me know what you thought by replying back to this email.

— Zach

Disclaimer: Dividend Dividend Weekly (Dividend Data) is not a professional financial service. All materials released from Dividend Data Weekly (Dividend Data) are for educational and entertainment purposes. Dividend Data Weekly (Dividend Data) is not a replacement for a professional's opinion. Contributors to the Dividend Data Weekly (Dividend Data) might have equities mentioned in the newsletter