Watching Dividend Payments Grow

Written by The Dividend Guy on January 27, 2007

I feel like I have been talking about this a lot lately, but I was entering some dividend payments I recently received into Microsoft Money and say the dramatic effect of reinvesting dividend payments. I am going to take one of my stocks as an example and show you what has happened over time.

The following chart shows the various dividend payments I have received from one of my best holdings - RBC Royal Bank (RY.to). You will notice that over time the dividends that I receive has been shooting up. This is because each and time I receive a dividend payment from the company, I plow that payment into more and more shares. The effect this has, even over a relatively short period time, is huge. The big jump in the early years was because I made a couple of purchases of shares as I built my position, but since August of 2004 the increases has all been because of dividend reinvestment.

Dividend Reinvestment

This is very powerful stuff. If you trend line this out into the future, it becomes clear that the amount of money that RBC Royal Bank pays me will be quite substantial. The cool thing is I don’t need to do anything - it all works automatically for me.


Recommended: ING DIRECT makes $aving money simple! Open your account online today and start earning 3.00% variable APY. No Fees and No Minimums!

del.icio.us| Digg| Furl| Reddit| Google| StumbleUpon| Technorati| Help|

10 Comments so far

  1. The Dividend Guy January 28, 2007 6:21 pm

    Testing Spam Karma and Bad Behavior - getting way too much comment spam on the site!!

  2. » Carnival of Personal Finance #85 @ fivecentnickel.com January 29, 2007 6:17 am

    […] The Dividend Guy presents Watching Dividend Payments Grow posted at The Dividend Guy Blog. […]

  3. Growth in Value January 29, 2007 10:18 am

    …I feel like I have been talking about this a lot lately, but I was entering some dividend payments I recently received into Microsoft Money and say the dramatic effect of reinvesting dividend payments…

    We won’t hold it against you. Your blog is called “The Dividend Guy blog” after all. :)

    You’ve once again shown the awesome power of DRIPping a company that consistently increases dividends.

  4. Cdntrader January 29, 2007 8:20 pm

    does microsoft money do the charting for you?

    thinking of getting something to help with profolio performance tracking

  5. Kimberly January 31, 2007 12:07 pm

    Just in case you see a bump in traffic, we selected you as a top financial blog. We tried our best to make sure that the blogs selected were actually in the state we thought they were in, so I apologize in advance if we accidentally put you in the wrong spot.
    http://www.yourcreditnetwork.com/blog/TheStatesOfCredit.aspx

  6. Money Smart Life » Carnival of Investing - Super Bowl Edition February 5, 2007 8:09 am

    […] The Dividend Guy presents Watching Dividend Payments Grow posted at The Dividend Guy Blog. When a coach wins a Super Bowl like the Colts did this season, reinvesting their success into the team should help make it even better next year. The same with investing, plowing your gains back into your portfolio can help you leverage the power of compound growth. […]

  7. Watching Dividend Payments Grow | Your Financial Hub March 31, 2007 3:28 am

    […] Watching Dividend Payments Grow I feel like I have been talking about this a lot lately, but I was entering some dividend payments I recently received into Microsoft Money and say the dramatic effect of reinvesting dividend payments. I’m going to take one of my stocks as an example and show you what has happened over time.The [.] (more) […]

  8. bill June 19, 2007 8:56 am

    Do you also sell your stock to lock in profits and plow them back in when the stock drops? This can also have a dramatic effect on your total return.

  9. ninad August 22, 2007 4:48 pm

    Do you also advice abt stocks?
    http://www.regal-finance.co.uk

  10. bills August 27, 2007 12:25 pm

    Are stocks that pay dividends better than stocks that don’t?

POST A COMMENT

If you would like to make a comment, please fill out the form below.

Name - (Required)

Email - (Required but not published)

Website - (Optional)

ENTER YOUR COMMENTS BELOW






Student Loan

www.financialwebring.com