Many of us dream of becoming millionaires by our investing prowess. Often, these dreams are of getting rich quickly without doing anything other than purchasing a lottery ticket, or buying a highly speculative stock hoping for the next home run. Purchasing speculative stocks too often will cause your losses to be greater than your gains. To avoid this, investors would be better off investing in a proven dividend paying company that grows earnings consistently over the long-term.
There is something to be said about growing wealth steadily and consistently. With investing, consistency in earnings growth drives consistency in stock prices. McDonald’s (MCD) is one of those companies that grow earnings consistently. It has also increased its dividend every year since 1976. The combination of stock growth and dividends can add up significantly over time when the dividends are reinvested. Full post.