Motley Fool Money What to Do with Dividends
Jun 27, 2023
Jim Gillies, a savvy investment analyst specializing in stock analysis, joins Robert Brokamp and Matt Argersinger, experts in dividend investing and wealth-building strategies. They dive into Walgreens Boots Alliance’s disappointing quarter and discuss its turnaround prospects. The trio also explores Brookfield’s bold $4.3 billion acquisition of American Equity. Additionally, they highlight the crucial role of dividends in long-term wealth accumulation and strategize on managing dividends, emphasizing the balance between reinvesting and cashing out.
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Berkshire’s Dividend Growth
- By 1994, Berkshire Hathaway invested $1.3 billion in both Coca-Cola and American Express.
- By 2022, dividends grew to $704 million from Coke and $302 million from American Express.
Dividend Growth vs. Inflation
- Since 1994, Coke's dividend grew 8.3% annually, American Express's grew 7.7% annually.
- The S&P 500's dividend grew by 6% and inflation was at 2.6%.
Dividend Growth and Performance
- Companies that grow dividends consistently outperform the market.
- Dividend growers returned about 10.7% annually, outperforming non-payers.