Let's say you invest $10,000 in a stock that pays a 6% yield but does not grow the dividend. If the stock appreciates at a pace in line with the historical average of the S&P 500, and if you reinvest the dividend for 10 years, you'll have $32,303 after 10 years, $52,878 after 15 years and $83,372 after 20 years. Furthermore, after 10 years, you'll collect $904. After 15 years, $1,026. And you'll receive $1,120 after 20 years. Now, what happens if we start off with a lower 4% dividend yield, but that dividend grows 8% per year? After 10 years, the nest egg will be slightly lower at $31,241. You'll have more at 15 and 20 years than you did with the flat 6% yielder. Your totals will be $55,432 and $98,615, respectively. Perhaps more importantly for the investor who starts collecting the income at 10 years, the Perpetual Dividend Raiser generates $1,158 - substantially more than the $904 in the earlier example. After 15 years, the income rises to $2,081. If you let the money compound for 20 years and then begin receiving the dividend checks, you'll take home $3,750 - more than three times the amount with the higher starting, but static, yield. How about if you need the income today and don't have time to reinvest the dividend and let it compound? A $10,000 investment in a stock that yields 6% and doesn't grow its dividend will generate $600 in income every year. The 4% yield that grows by 8% every year starts off paying you $400 per year. By year seven, you'll be making $634 - more than the 6%-yielding stock. At year 10, you'll collect $799 - 33% more than the $600 paid by the 6%-yielding stock. After 15 years, you'll be collecting just about double the amount of the other stock with $1,174, and five years after that, your income will be $1,726 - nearly three times the amount of the 6% stock. This is a perfect illustration of why I strongly recommend Perpetual Dividend Raisers for long-term investors. Your nest egg will grow faster, and you'll receive more income than if you chased yield and bought stocks that paid higher dividends but didn't grow those dividends. Though the money I earned in high school and over summers helped me get through college, it was a sickening feeling to draw down those reserves knowing there wasn't much left for a real emergency. Perpetual Dividend Raisers help ensure I never have that experience again. Owning stocks that generate more income every year should help me avoid draining the nest egg at a rapid pace. Good investing, Marc P.S. There's no better way to build a wealthy retirement than to invest in dividend-paying stocks - including the one I like to call my "#1 Dividend Stock." Just click here to see how to access it - and to discover a host of other secrets you can use to fight rising prices in your own portfolio. | 
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