Growth Over The Years

Growth Over The Years

Growth over the years

It will be appreciated that, although with first-class concerns the initial yield on original outlay may be low, the years could bring 'Scrip' and 'Bights' issues, resulting in the number of your shares being multiplied. Thus the same dividend percentage on

* 'Blue Chips' (originally an American expression) are very high-value countess used in the card game of poker. and the term, when used In investments, a security of exceptionally high standing. An increased number of shares would in due course show a higher yield. For instance, 100 ordinary shares of £1 each purchased at par with a 2% dividend rate.

Yield = 2% on your £100 outlay.

Over ten years 'Scrip' issues increase the holding to, say, 300 shares of Li value. Even with the percentage remaining at 2% the dividend paid on the 300 shares is now £6, which shows that your income has multiplied three times from ten years ago. The present yield on the original outlay of £100 is thus 6%.

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