On July 9, 2012 I bought 1742 shares of nrf in a small IRA at a cash cost of 9,275. I set the position to drip dividends. I just dripped my sixth dividend. Today I have 2004.327 shares which, at 9.73, are worth 19,502, a total return of 110.26% in a little better than 1.333 years. But let's look at the elements.
The six drips produced 262.327 shares......15.06% of the 1742 I bought.
The drip shares at 9.73 are worth 2,552 which is 27.51% of my original 9275 cash investment.
Yeah, the price per share increase of 82.75% is the dominant portion of the 110.26% total return and the penny per quarter increase also helped, but the moral of the story, especially for you young people, is do not underestimate the power of compound dripping.
I just turned 30 and only started investing about 3 years ago when I graduated. I have about 8,000 shares of NRF (with plans to grow), in part because I have dripped since I started. It keeps my money working for me and (with the exception of a few divys), with a rising NRF, my basis has been lower than would have been had I invested myself. Big fan.
If you keep saving and investing in dividend-paying equities, dripping dividends, for the next 35 years, you will retire a VERY wealthy person. The government will punish you for saving and investing, but you will be so wealthy you won't really care.