ilmscore | Prediction Details
"And so for the people that bought here, yeah, they doubled their money, but you are now quadrupling your money because you bought in early. And so now let's look at the dividends. If they want to keep this 3% dividend yield because they want to keep attracting those dividend investors, what are they going to have to do? They're going to have to double this dividend price from $6 a share to $12 a share. You bought in when they were paying $3 a share in dividends. Now they're paying $12 a share in dividends. You bought in when they were paying a 3% dividend yield. Now it's going to be a 12% yield based off of the investment you put in initially. So, if you bought into this company at this point and you held your stock for 10 years, and the stock doubled twice, and they wanted to maintain their same dividend yield, now you're making a 12% return on your money, not a 3% return on your money, which means you just 4x the amount of money you're making in dividends by doing nothing except holding the stock."
By Minority Mindset | February 6, 2024 | Pending
From video
How To Invest In Dividend Paying Stocks & NEVER WORK AGAIN 00:07:11 - 00:08:00
Interpreted Prediction
If a stock doubles in price twice over 10 years and the company maintains its dividend yield by doubling its dividend payout each time, an early investor who bought at $100 could see their initial 3% yield increase to 12%, effectively quadrupling their dividend income compared to new investors.

Prediction Details

Topic
Dividend Yield Growth Over Time

Comments

0 comments

Be the first to share your thoughts.

Like this prediction?

Join to make your opinion count.