Summary

  • You can achieve an 11% yield and a ten-year average total return of 12% in ten years.
  • To do it, you need a 4.7% starting yield and 10% dividend growth, assuming the market performs as it has historically.
  • Try to invest in stocks with a minimum of a 4% yield, 10% annual dividend growth, and a maximum payout ratio of 75%.
  • Calculate the payout ratio based on cash flow from operations and/or free cash flow.
  • You can make gobs of money reinvesting dividends in a stock that declines.
  • Because I’m such a nice guy, I’m providing a free calculator at www.getrichwithdividends.com to help you figure out the future yields and total returns of your stock based on the variables that you enter.

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