Are dividends a worthwhile investment?

Discussion in 'Ask any question!' started by Alex Griffith, Jul 12, 2019.

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  1. Alex Griffith

    Alex Griffith New Member

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    I used a DRIP calculator using Coca Cola stock. Obviously, it wont stay at this rate, but it should still get good returns. This sounds unrealistic, but anytime I put a stock in with a consistent payment every month, the results are astounding. Are these realistic?

    Principle Investment Balance Amount: $ 20000
    Employee Monthly Contributions: $ 1000
    Current Company Price of Stock: $ 52
    Expected % Increase of Stock Price: (annually) % 2
    # of years to invest: 30
    Current Dividend Yield: % 3.4
    Expected Dividend Growth Rate: % 9.1
    DRIP: Yes
    Taxable: Yes
    If Yes: Tax Rate 15%


    [​IMG]

    Investing 12000 a year will apparently give me a 2.9 million $ portfolio. I dont know if the calculator is wrong, or if the 9.1% dividend growth rate for Coca Cola is unrealistic.
     

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