During the presentation of the Q3 results AbbVie announced a quarterly dividend increase from $0,96 to $1,07 per share. This means an increase of 11.5%.
I own 35 shares of AbbVie. As a result my yearly estimated dividend income will increase with $15,40. My yield on cost after this dividend increase is 5,17%.
That’s what I’m talking about!
It adds $7,60 post tax to my yearly total! I would have to add $190 at a yield of 4% to get that amount.
AbbVie is a good sample of what compounding brings.