Back in early December 2012, I launched the iPIG portfolio, with an objective of building a dividend-like income stream that could potentially keep up with inflation.
Since then, I’ve added no money to the account, and I have paid most taxes out of another pocket. As of this past Friday’s close — 12 years, 10 months later — the account is now worth 7 times what I originally invested in it. That is absolutely insane.
In addition, the broker’s “estimated income” field for the account anticipates enough dividends over the next twelve months to cover 13.6% of the originally invested amount. That is slightly less crazy, as it does represent a roughly 1.9% yield on current value. Still, it’s a testament to the long term value of compounding.
Of course, the past is not prologue, as tempting as it may be to consider. Either way, I remain grateful for the investing lessons I learned in my time with The Motley Fool and thankful for the financial buffer those lessons have provided.
Super! Congrats on making a great portfolio and not messing with it!
On that compounding thing over time, our oldest continuous holding is Paychex (PAYX) since Mar 1990.
Our split adjusted cost is around $0.66 and the dividend-split adjusted cost is around $0.29!
The current quarterly dividend is $1.08
Each 100 shares became 2,562 from splits (8 3:2 splits)
Unfortunately, all the shares in our taxable account were used to build a house in 2005. The shares in our IRA’s shifted brokers and Roth conversions so our original cost has been lost. I can only guess it was in the $25 to $35 range since that was the “sweet spot” to make a block more widely affordable.