ilmscore | Prediction Details
"So, if this company is making really good guac and the value of their company doubles, you're going to see the stock price double as well, which means you have just doubled your investment. But if they want to keep attracting these investors who are investing for dividends, they might have to raise the dividend price. And if they want to keep it at this 3% annual yield, they're going to have to double their dividends. But we're not done yet because I want you to be a long-term investor because the investors who make the most money are the people who have the long-term mindset. And so now, let's assume this company continues to make new guac and they create these new guac variations. And now five years later, this company doubles again. So now they're not trading for $200 a share. They're trading for $400 a share. 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."
By Minority Mindset | February 6, 2024 | Pending
From video
How To Invest In Dividend Paying Stocks & NEVER WORK AGAIN 00:06:33 - 00:07:43
Interpreted Prediction
Long-term investors can see their dividend yield increase significantly (e.g., from 3% to 12%) if the company's stock price doubles twice and they maintain the 3% yield by doubling dividend payouts per share.

Prediction Details

Topic
Dividend Compounding

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