☕️ Sunday Coffee: How a $432 Investment Turned Into a 74% Yield on Cost
MaxDividends Mission: Helping people build growing passive income, retire early, and live off dividends.
My personal life & business column — a mix of life moments, investing insights, and reflections on long-term wealth building.
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Intro
Friends, I came across this post on Reddit by accident and couldn’t just scroll past it. Honestly, I can’t think of a better way to describe what MaxDividends is all about — the idea behind it and what this project is trying to achieve.
A big thank you to the anonymous author. I hope they won’t mind me sharing it here.
I’m posting the text exactly as it was written, without changing a thing, because there’s really nothing to add. It says it all.
So grab a cup of coffee and enjoy the read.
Forgot about 4 shares of Lockheed from 2013… DRIP turned $432 into $15k
I saw a post here about Computershare and remembered I had an old account there. Back in June 2013 I bought 4 shares of Lockheed Martin through Computershare for $108.04 each, so about $432 total. I set the dividends to automatically reinvest and honestly forgot the account even existed.
I logged in recently and was pretty surprised.
Those original 4 shares have turned into 23.319807 shares from years of dividend reinvestment. With Lockheed trading around $650 now, the account value is roughly $15,158.
The dividend today is $3.45 per share each quarter, which is $13.80 per year. With 23.32 shares that means I’m now receiving about $322 per year in dividends.
What surprised me most is the yield on my original investment. That $322 per year compared to the $432 I initially invested means I’m earning roughly 74 percent of my original investment every year in dividends.
Overall the investment grew from about $432 to around $15,158 over roughly 12.75 years. That works out to about a 32 percent annualized return with dividends reinvested.
For comparison, if I had invested the same $432 into the S&P 500 in 2013 and reinvested dividends, it would be worth roughly $1,900 today, which is about a 12 to 13 percent annual return.
The funny part is that I didn’t touch the investment or think about it for more than a decade. Apparently one of the best investing strategies is simply forgetting your Computershare password.
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This story is exactly how long-term dividend investing is supposed to work.
But there is one important detail.
The author got these results almost by accident. He bought a great company, set up dividend reinvestment, and simply forgot about it for more than a decade. Fortunately, it worked out beautifully.
But you don’t have to rely on luck or forgotten passwords.
The same kind of results can be achieved much more consistently — and with a lot more peace of mind — when you have a clear system, a simple framework, and a compass to guide your decisions along the way.
That’s exactly why MaxDividends exists.
Over the years I’ve built a straightforward approach designed specifically for long-term dividend investors:
The MaxDividends Income System — a simple framework for building reliable dividend income
The 5-Step Secret Formula — a repeatable process for selecting the right companies
Top Undervalued Dividend Eagles — a watchlist of high-quality dividend growers when they are attractively priced
The MaxDividends App — your compass for tracking income, opportunities, and long-term progress
With the right system in place, you don’t have to remember everything, chase the market, or constantly second-guess your decisions.
You can simply invest in great dividend companies, reinvest the income, and enjoy the process — while time quietly does the heavy lifting.
Get instant access to the MaxDividends Income System & App + Top Undervalued Dividend Picks.
With MaxDividends Community you’ll always be part of a winning team and stop viewing the future as an uncertainty. Worry will fade, replaced by confidence and peace of mind. You’ll focus on doing what you love while your passive income continues to grow.
With respect for your well-being, Max
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MaxDividends Community
MaxDividends Mission: Helping people build growing passive income, retire early, and live off dividends.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
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