Personal Finance 101

I recently came across a nice article from Motley Fool that gives a real life example of the power of choosing the best dividend growth stocks.

Not only can you receive a huge return in the form of capital gains, but those seemingly irrelevant dividends can supercharge your portfolio over the course of time.

Here is a live example of the power of dividend growth from a Motley Fool Reader:

“I bought Corus Bankshares (then called River Forest Bancorp) around 1985. My first year’s dividends were $196. Now, after 20 consecutive years of dividend increases and seven splits, I’m receiving $14,400 annually in dividends.”

That $14,400 in annual dividend payments comes off an initial investment of around $12,000. As long as Corus maintains its current payments, Howard will get back more money every year than he originally invested.