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The stocks in the Top 100 Dividend Stocks list is updated every January for the previous full 10-year period. Join the email alerts to know when stocks are added or removed from the list. Please note, while some stocks may be added or removed from the list throughout the year, the data set IS NOT updated through-out the year. The data (i.e. yield on cost, dividends paid and 10-year total returns) are updated ONCE a year in January to show the most recent previous full 10-year period.
Fractional shares are used in these calculations. For all calculations, trading fees and broker commissions equals zero. Obviously, in real life, an investor will have both trading fees and broker commissions, and buying fractional shares is not realistic.
No dividends payments are used in the first month (January 2015). Since fractional shares are used, this means that dividends are also paid on these fractions of shares, which does not happen in real life. Also, new (fractional) shares are purchased in the same month that the dividends are paid. In real life, this is usually not possible.
The current 10-year (120 month) period used in calculations is from January 1, 2015 through December 31, 2024. The original $1,000 worth of shares are purchased on the first day of trading (January 2, 2015) at the close price.
The original $1,000 worth of shares are purchased on the first day of trading of the year at that day's close price. However, some of these stocks are less than 10-years old. For those stocks the close price on the IPO date is used for the initial purchase.
This is my favorite number to look at. Basically, we are looking at what the CURRENT YIELD is on a stock based on your original cost, in this case, the price you paid for the stock 10 years ago. So, let’s say you bought stock XYZ 10 years ago (year #1) at $100/share, and the stock THIS YEAR (year #10) paid you$20/share; then that means that your original investment of $100/share is now paying you 20% per year, i.e. your Yield-on-Cost is 20%. The formula used adds up all the dividends paid in year 10 only (January 1, 2024 – December 31, 2024) and divides that by the original investment of $1,000. If you want to get really advanced and really visually appreciate the power of long-term dividend compound investing (what I teach) then you’ll love to see this number graphed year-over-year. Not only is it cool to see but it’s also an incredibly powerful tool to help visualize trends for stocks that you might consider buying or selling. This is far more useful than just looking at the CURRENT YIELD or FORWARD YIELD for a stock.
This is just a simple addition of all the dividends paid for a stock if you purchased $1,000worth of fractional shares 10 years ago. This is the hypothetical DIVIDEND INCOME for each stock for the last 10 years if you purchased $1,000 worth of the stock 10 years ago, January 1, 2015, and held it through December 31, 2024. At the end of the day, we want this number to be a large number, and if it’s not large then we need it to be GROWING at a rate that makes sense for your specific investing goals. And yes, investing goals are actually different for everyone.
Take you total dividends paid over the 10 year period and divide it by the amount you invested at the beginning, in this case $1,000. This is your return on your invested capital. This is your real cash return, not some fake paper return that your advisor shows you on your glossy quarterly update. THIS IS YOUR CASH RETURN. Benjamins that you can buy things with.
This is your cash return (above) plus your "on paper" return. This is the % return of a hypothetical $1,000 invested in the stock over the 10-year period from January 1, 2015 through December 31, 2024. This return calculates for stock price appreciation (or depreciation) plus all dividends received. The basic formula is:
10-Year Total Return = (Month’s Net Liq – Original Investment) / Original Investment
The original investment for each stock is $1,000. Month’s Net Liq = Total Shares Owned x Month’s LAST Print Price. All dividends received are converted to new shares in the month received, which increases the number of shares (fractionally). So, dividend income is not calculated as a separate figure, since it’s already included (i.e. converted already) into the number of current shares owned. This idea of converting dividend cash into new shares every month is the beating heart of my investing philosophy….I teach this way of investing in my Beginner Investing Class.