Saturday, 9 May 2009

Turning $37.50 into $900,000.00+ ...

Turning $37.50 into $900,000.00+ ...

Sunday April 26, 2009

According to the most recent Fortune Magazine, which is dedicated to the annual Fortune 500, "If you'd bought a single share [of Johnson & Johnson] when the company went public in 1944 at its IPO price of $37.50 and had reinvested the dividends, you'd now have a bit over $900,000, a stunning annual return of 17.1%." On top of that, you'd be collecting somewhere around $34,200 per year in cash dividends!

The article goes on to say, "Even if you hadn't reinvested the dividends, that single share would now be 2,500 shares as a result of splits, and you'd be collecting dividends of $4,500 a year from that $37.50 investment. If only Grandpa had bought 100 shares."

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