The Snowball Effect: How To Multiply Your Wealth

Example #5: Hormel Foods Corp (NYSE:HRL)

Hormel Foods Corp (NYSE:HRL) recently declared its 50^th consecutive annual dividend increase. The company was founded in 1891.

Hormel is a dominant player in the consumer meat industry. The company has generated compound returns of 14.5% a year for investors from 1990 through 2015.

$1 invested in Hormel Foods Corp (NYSE:HRL) in 1990 grew to $29.63 by the end of 2015. Not bad for a well-established packaged foods business.

Example #6: Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson (NYSE:JNJ) is currently the largest health care corporation in the world.  The company is one of the most stable businesses in the world as well.

This stability is reflected in Johnson & Johnson’s ultra-low stock price standard deviation.  The company has the lowest 10 year stock price standard deviation of any business with 25+ years of dividend payments without a reduction.

This ‘slow and steady’ business has been a boon for shareholders over the long-run.

Every $1 invested in Johnson & Johnson (NYSE:JNJ) stock in 1990 grew to $24.46 by the end of 2015.  The company generated compound returns of 13.6% a year for shareholders during this time period.

The company’s low stock price volatility only adds to its appeal.  Investors have historically generated excellent returns with Johnson & Johnson stock without as many gut-wrenching ups and downs as compared to other stocks.

Example #7: 3M Co (NYSE:MMM)

3M Co (NYSE:MMM) is a large, diversified manufacturing and consumer products firm. The company makes Filtrete air filters, Post it notes, Command adhesives, and much, much more.

3M was founded in 1902 and has increased its dividend payments for 56 consecutive years. Back in 1990, the company had been in business for 88 years and had paid increasing dividends for 31 years.

How did an investment in 3M in 1990 do?

Every $1 invested in 3M Co (NYSE:MMM) grew to $15.43 by the end of 2015, for a compound annual growth rate of 11.6% a year.