These 5 Dividend Stocks Turned a $5,000 Investment into over $1 Million | Dividend Investing
These 5 Dividend Stocks Turned a $5,000 Investment into over $1 Million | Dividend Investing
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I’ve been using the dividend growth investing strategy for a decade. And it’s performed magic. Despite growing up on welfare, not having a college degree, and never having a high-paying job, I retired in my early 30s.
How’d I do it? I took the savings from my very regular car dealership day job and invested it into high-quality dividend stocks. These are stocks that represent equity in world-class businesses. And these stocks pay safe, growing dividends.
It’s these safe, growing dividends that I now live off of. But it’s not just dividends. Dividend investing sometimes gets a bad rap, as if these stocks are boring and don’t grow. Well, that’s just not true.
Many high-quality dividend growth stocks grow at incredible rates and beat the market. That shouldn’t be surprising. Most of the S&P 500’s long-term total return comes from the compounding of reinvested dividends. And today, I’m going to show you five dividend growth stocks that turned a $1,000 investment in each into more than $1 million after 30 years.
Let me set the stage here.
I’m talking about investing just $1,000 into each of these five dividend growth stocks from March 1991 to March 2021. You reinvested dividends along the way but otherwise didn’t invest new money. All you had to do after that point was let these five businesses go to work for you and compound your wealth and passive dividend income. Also, I’m not cheating here by starting this time period before these stocks were paying out growing dividends.
Each one of these stocks were sporting measurable dividend growth track records at the time. So this isn’t getting in before the growing dividends start rolling in and supposedly slow things down.
And I’m going to show you just how much growth is possible with some of these stocks.
First up, Target (TGT).
This stock turned a single $1,000 investment into slightly over $204,000 between March 1991 and March 2021. Yeah, there’s some growth there. The annualized total return is almost 20%.
Next up is Parker-Hannifin (PH).
It turned $1,000 into over $104,000 between March 1991 and March 2021. The annualized total return is over 16%. That’s the best kind of boring I’ve ever seen.
The next dividend growth stock I want to tell you about Sherwin-Williams (SHW).
This high-quality dividend growth stock turned a $1,000 investment into just under $118,000 between March 1991 and March 2021. The annualized total return comes in at over 17%.
The next stock is American States Water (AWR).
This dividend growth stock turned a $1,000 investment into slightly over $300,000 over the last 30 years. We’re talking an annualized total return of over 20%. Water has never looked more like money than it does right now.
The final stock is S&P Global (SPGI).
It turned a $1,000 investment in March 1991 into just over $404,000 by March 2021. This is an incredible annualized total return of over 22%.
So we’ve taken $1,000 invested into each stock in March 1991 and turned that into a final tally of… drumroll, please… $1,131,684.29.
We overshot our millionaire goal here. This investor is already well on their way to $2 million
This massive sum of money was built from only $5,000. If that doesn’t show the power of long-term compounding from high-quality dividend growth stocks, I don’t know what will.
Please note: I’m not a registered financial advisor and the ideas I talk about in these videos aren’t specific recommendations for you as an individual. Everyone has different financial situations, risk tolerance, goals, time frames, etc. You should also be aware that some of the trade details (specifically stock prices and options premiums) are certain to change from the time I place my trade or do my research, to the time I film the video, to the time it gets edited, to the time it gets published… and to the time you’re watching this video! So PLEASE, don’t attempt to make this trade yourself without first doing your own due diligence and research.
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LEGAL DISCLAIMER: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose your entire investment. If your money is not FDIC insured, it may decline in value. Jason is not a licensed financial advisor, tax professional, or stockbroker and he does not purport to be.
Great videos .
Put a huge smile on my face! You are the best Jason! Love your channel 💙
stock are good but I swapped and invested in forex and crypto I have been earning from it
Great insight of the future. Thank you for the dividend strategy 👍
Based on my math the $5000 of original investment went up by roughly 200x over the 30 years. This correlates to a growth rate of about 19.5% per year, which definitely beats the markets.
AAPL would have been and excellent pick 30 years ago. I am old enough though to remember that nobody would have predicted what they are now. In the early 90’s the MAC computer was barely surviving. It couldn’t compete with the IBM clones.
Jason how can I become you? 38 and broke with 80k student loans. I recently started investing again
They should show this video to every high school class
Thanks for sharing. I love today’s pick. : )
Can someone with a normal 60k day job retire in 5 years as you did ? Is this something possible as of today 2021 ?
The single best clear and to the point financial video on YouTube bar none. All in under eight minutes.
Great video and awesome strategy.
17.2% CAGR?
Let me know when you’re spotlighting one of these bad boys for 2031!
I’m ready! ; )
If I hit the lottery am going to invest it towards dividend stocks
Great video. Very inspirational.
I loss 8000 doller….iam dipressed pls help me
Great examples. What are your thoughts on these five stocks now?
"Don’t just plant a tree, plant a forest" I am hearing you Jason. I have more stocks in my portfolio than I have full shares of stocks. In my small starter portfolio I would rather have a partial share of JNJ than a full share of something that wont serve me in my future. Thank you for your videos sir.
Great video; and there’s plenty more examples to pick from. Thanks for putting this together. The "million" dollar question is what is that same $1,000 equivalency in today’s dollars for the investors of today that has 30 years in front of them.
What about today Jason which 5 stocks would you invest $5000 total to get to $1million in the future?
Great video! What do you think the next "millionaire maker" DG stock/stocks will possibly be?
awesome vid!!! I can’t get enough of the div stocks!
if you were to do it over again today….which stocks would you choose? the same ones? would you invest the same initial amount of $1k or more?
damn this guy’s wack
How long did it take and how much money did you have to put in an initially
Thanks Jason. as always.
Is there a calculator that tracks compound growth in annual return and dividends?
Hey Jason, I have a pile of money. Will you invest it for me! Let’s make a video, blog series out of it. 🙂
That’s awesome what are the 5 stocks to invest now to get to 1M in 30 years? 🙂
Whenever I have a bad day @ work I watch one of your videos for motivation to spend less and invest more .