Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: texirish Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 7847  
Subject: Benefits of Dividend Reinvestment Date: 10/22/2012 12:50 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 6
Seeking Alpha article:

http://seekingalpha.com/article/938651-exxon-mobil-millionai...

The key point for long term investors:

In fact, from just a single share, dividend reinvestment, and quarterly recurring $100 investments over the past 40+ years would result in a stock position worth over $1 million. The single share was purchased on May 4, 1970 for $53.75. Then all dividends are reinvested as well as just $100 every quarter. This slow share accumulation shows patient investing. From just 1 share, the splits, dividends, and reinvestment eventually expand to 11,359 shares, worth just over $1 million.

I'm just hoping it continues going forward. In a world where transportation is based on oil, I believe it will if world economies continue to grow. Maybe not as fast ....... but fast enough. It's going to be a long time before anything replaces oil in transportation.

The IMF recently published a working paper looking at how future increases in the demand for oil might impact prices.

http://www.imf.org/external/pubs/ft/wp/2012/wp12109.pdf

From their conclusions:

Our model performs far better than competing models in predicting either oil production or oil prices out of sample, in a field where
predictability has historically been low. Our empirical results also indicate that, if the model’s predictions continue to be as accurate as they have been over the last decade, the future will not be easy. While our model is not as pessimistic as the pure geological view, which typically holds that binding resource constraints will lead world oil production onto an inexorable downward trend in the very near future, our prediction of small further increases in world oil production comes at the expense of a near doubling, permanently, of real oil prices over the coming decade.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Ringing the NASDAQ Bell
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement