From $1000 to $10,000 with dividend stocks

We show you how you can achieve a huge total return in the long term by reinvesting dividends.

In a very realistic scenario, an investment of $1000 becomes $10,000 in 20 years. We explain how this works using a number of examples.

Investing in dividend growth stocks is the way to achieve a large capital in the long term. It is then important to reinvest the dividends every quarter. It is also important that the dividend grows annually and that the dividend yield is as high as possible at the start.

The bizarre thing is that the total return of a stock that increases the dividend significantly every year is much higher if the stock price does nothing. The idea behind this is simple: by reinvesting, the total position (the number of shares) grows further each time; in our calculation example we start with 1 share of $1000 with a dividend yield of 2.5% and an annual dividend growth of 10%.