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Dividends are important

All investors would be best served to own a stock which pays an above average dividend, has a high ROE and has the free cash flow to buyback shares and keep growing the dividend at an above average pace. Altria ,the stock on which my financial future has been built is ONE SUCH STOCK. Since 1925 and since 1957 Altria has OUTPERFORMED EVERY S&P 500 stock with a annual compounded rate of over 18% WHEN REINVESTED DIVIDENDS are included. IT IS IMPORTANT TO ENTER THIS STOCK when the dividend YIELD is over 5%. I started buying 15 years ago with a dividend yield of 5.7% . YOUNG or old this stock should be bought to prepare for retirement. If you are 30 years old and you only have 35000 saved ,investing in Altria would give you a 5% dividend yield or 1750 yearly. You would get about 1500 shares . The dividend yield usually doubles about every 8 years.so at 38 you would have 3500 yearly at 46 you would have 7000 at 54 you would have 14000 at 62 you would have 28000 and at 70 you would have 50000 WITHOUT DIVIDENDS reinvested. However with reinvested dividends look at what the chartwill be "approximately"

age 31 shares 1500 using a 5% annual compounded rate for 40 years in a RETIREMENT ACCONT these shares will increase to over 10000 shares by age 70 when mandatory withdrawal starts( commissions are taken into effect ) YOUR YEARLY dividend will be about 330000 IF YOU DO NOT INVEST ANOTHER PENNY. Assuming a 5% dividend yield your portfolio should be worth 6.6 Million dollars. IMagine what these numbers would look like with a 4000 dollar IRA investment each year. Do the math yourself

1000 dollars invested in 1957 in Altria was worth over 4.7 million with reinvested dividends 46 years later. MORE than 3 TIMES the 2nd place stock in that time span. the compounding effect on high diidend stocks WHICH ARE GROWING is VERY SIGNIFICANT

Berkshire Hathaway of course does not pay a dividend but has done great under Warren Buffett's leadership and the fact there are no stock options or excessive CEO compensation. Good luck finding the next Buffett

If you could pick the next Wal mart or Microsoft perhaps a no dividend stock could do as well. BUT altria is not a "maybe" stock they dominate more than 50%of the cigarette market where you cant advertise andhaveadded cigars ,moist smokeless tobacco and snus

In "theory" a stock which DOES NOT pay dividends and instead reinvests it for you like Berkshire is better"provided the money is invested wisely bya a "Warren type " guy. I have about 10% of my portfolio now in Berkshire. Altria will continue to dominate the domestic tobacco market given that NO competitor is ALLOWED to advertise