The Snowball Effect: How To Multiply Your Wealth

Example #2: Lowe’s Companies, Inc. (NYSE:LOW)

Lowe’s Companies, Inc. (NYSE:LOW) is the 2^nd largest home improvement store in the United States.  In 1990 Lowe’s was one of the largest home improvement stores in the United States.  It had a dividend history of over 25 consecutive years of increases.

Investors in Lowe’s 25 years ago have done very well…

$1 invested in Lowe’s Companies, Inc. (NYSE:LOW) in 1990 was worth $108.49 by the end of 2015 (including dividends).  An investment of $9,217 in Lowe’s in 1990 would be worth $1 million today.

This comes to a compound annual total returns of 20.6% a year.

Example #3: Procter & Gamble Co (NYSE:PG)

Procter & Gamble Co (NYSE:PG) was just as well-known in 1990 as it is today.  The company has an iconic brand portfolio with names like Tide, Bounty, Gillette, and Charmin (among many others).

The company was founded in 1837.  In 1990, Procter & Gamble had been around for 153 years…  Not exactly a young company.

Still, long-term investors in Procter & Gamble Co (NYSE:PG) have done well.  Every $1 invested in Procter & Gamble has become $16.54 by the end of 2015.  This comes to a compound annual growth rate of 11.9% a year.

Example #4: Colgate-Palmolive Company (NYSE:CL)

Colgate-Palmolive Company (NYSE:CL) traces its history back to 1806.  Both the Colgate and Palmolive brands are easily recognized.

In addition to these brands, Colgate-Palmolive owns the Speed Stick, Soft Soap, and Science Diet brands (among many others).

Colgate-Palmolive has paid dividends since 1893. The company has paid increasing dividends for 53 consecutive years.  In 1990 the company had a streak of 27 consecutive dividend increases.

How did 1990 investors do?

Every $1 invested in Colgate-Palmolive Company (NYSE:CL) stock in 1990 grew to $28.85 by the end of 2015.  Colgate-Palmolive generated a compound annual growth rate of 14.4% during this period.