Astonishing gain from dividend reinvestiment

I have talked many times about how to get rich via investing in good dividend paying stocks. Actually you can get very rich with this simple strategy, far more than you can imagine as long as you are patient and persistent enough. I just saw a very vivid description of the astonishing effect of dividend investment.

In 1977 President Nixon took the United States off the international gold standard. Since that time, gold has increased from $35 to well over $1,600 an ounce nowdays.

That's about a 4,500% return. Not bad at all. But let's say you bought 100 shares of the tobacco company Philip Morris around $67/share that same month and reinvested your dividends over time. Your total investment would have been $6,700. And what you would have got today? Don't close your eyes: that small investment would be worth $6.1 million! That's more than a 90,000% gain. In fact, your dividends alone would be more than $380,000 just this year!
Actually any good compaies good dividends will just do that. Consider Johnson & Johnson and Procter & Gamble. These two companies have each returned about 11,000% over the same period. Remember, these are not high-flying companies. They are stable dividend machines that return a growing stream of cash to their shareholders. And that's where the biggest returns come from over time.

If you still have 15 or more years to invest, I would strongly recommend you to put at least some money into such great dividend stocks. Even better, teach your kids to start investing for long-term. A few thousands of dollars today could be millions of dollars for them in the future.