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>Put 2500$ into stock that pays dividend for 20+ years
>setup DRIP and have 100% of dividend payments go toward purchasing stock at whatever price the company says in their DRIP plan
>wait 10 years
>be worth 800k+, assuming 50%+ taxes (aka this is a lowball)
>take newfound wealth
>put 25k-all net worth toward stock that pays dividend for last 20+ years
>setup DRIP with 99% of dividends going into stock repurchase
>wait 10 years
>be george soros
When did you learn that all you need is patience to become rich and college is just a meme?
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>turning 2.5k into 800k in 10 years just off dividends
ok lol
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>>1817998
>>Put 2500$ into stock that pays dividend for 20+ years
>>setup DRIP and have 100% of dividend payments go toward purchasing stock at whatever price the company says in their DRIP plan
>>wait 10 years
>>be worth 800k+, assuming 50%+ taxes (aka this is a lowball)
No. Here, I'll give you Warren Buffett/Peter Diamond returns(20% annualized)
$2500 * 1.2^10 = X
$2500 * 6.1917 = X
$15479.34
Neck yourself. How do you become George Soros? You are born as George Soros, or you're ruthless enough to pull a Bill Gates/Zuckerfuckerberg and build it yourself, which again, entails being born into very high upper-middle/upper class at the right time.
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>>1818107
Woops, meant Peter Lynch.
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FYI, you'd need ~79% annualized returns for 10 years straight to hit 800k off of 2.5k. Jim Cramer's best brag was like one or two 50% years, Peter Lynch's run was 29% annualized. And that's without the tax consequences.
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>>1818115
You nit, DRIP only works at the yield of the dividend. Let's say I buy GE, that only gives me a 3% yield.
No decent company gives more than a ~6% yield, and only odd companies like mREITs can push into the 10% range. Compounding works the same, whether you're compounding DRIP returns, or capital gains returns.
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