It happened again today! I went through our charts, like I do just about every evening, and there it was… another dividend increase “pay raise.” It’s the second one this year already!
So, who was it that most recently increased their dividend to shareholders? Canadian National Railways did! CNI.
This is great, because we were already receiving $.89 a share annually from them, and they just gave it a healthy boost to $1.11 a share, for an increase of $.22 a share in payout. That’s enormous! How big is it? Well, if you take $1.11, and subtract $.89 from that, you get the difference of $.22. Then, if you take that $.22 and divide it by the old dividend payout of $.89, you get a product of 0.247191. With that product, you multiply it by 100, to move the decimal point over two places, and the resulting dividend increase “pay raise” number is 24.72%! I love that! That’s just fantastic!!!
You know what that means? That means our portfolio dividend income is continuing to grow at a tremendous rate. The average rate of dividend growth for all 19 of our concentrated holdings for the past 12 months stands at 18.64%. And, at that rate, were it to continue just like that with the shares we currently hold, that would result in a doubling of our portfolio dividend income to us in less than 4 years… 3.86 years, just to be a bit more precise.
My friends… This is what real stock market investing is truly about. It is about finding the very safest-dividend growers and accumulating as many shares as possible, and re-investing those dividends when low-risk market entry opportunities arise, and just letting your ownership of these very fine corporations make you rich! It takes time, but it is the only sure way to get to where it is that you want to be.
Here’s to your successful investing!
Harold F Crowell