Invest $50K in This Stock to Become a Dividend Millionaire in 10 Years

Invest $50K in This Stock to Become a Dividend Millionaire in 10 Years

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Warren Buffett, the most successful dividend investor of all time, owes his success to a simple but highly effective compounding strategy known as dividend reinvestment programs (DRIP). This strategy harnesses the power of compounding by reinvesting dividend earnings into stocks, creating a snowball effect that has made the Oracle of Omaha the success it is today.

Long-term dividend investors can take advantage of the DRIP strategy to turn their stock investments into fortunes, and Pfizer Inc. (NYSE:PFE) is among the growth stocks with the potential to make you a millionaire in about ten years through dividend compounding.

As the table below shows, a $50,000 investment in Pfizer, with monthly additions of $500, could grow to $1,030,974.5 after taxes by 2034, assuming the stock maintains its current annual growth rate of dividend of 0.03% and the projected share price growth rate of 25.58%.

Although Pfizer shares have fallen to their lowest level since 2013 due to declining demand for COVID-19 vaccines, the company’s future looks bright as it continues to launch new products funded by profits made through windfall profits. of vaccine sales. In February 2024, Pfizer announced its plan to have at least eight blockbuster cancer drugs by 2030, following the acquisition of Seagen Inc, a biotechnology company specializing in the research, development and commercialization of cancer therapies.

Institutional investors are already showing strong interest in Pfizer, with Two Sigma acquiring 18.9 million shares, Point72 Asset Management acquiring 1 million shares, and Susquehanna acquiring 1.5 million shares in the first quarter of 2024. Pfizer It currently offers an annual dividend yield of 5.75%, with a 5-year dividend growth rate of 3.70%.

Build Wealth With These High-Yield Alternatives

While investing in dividend stocks like Pfizer can be a powerful way to build long-term wealth, savvy investors should also consider alternative investments that offer high yields and diversification. Two such options are the Ascent Income Fund and the Arrival Private Credit Fund.

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O Ascension Income Fund targets stable yield from senior commercial real estate debt positions, offering a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a key investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000.

O Private Credit Fund has arrived simplifies investment in short-term financing for real estate projects, providing attractive returns guaranteed by quality residential properties. With a target annualized dividend of 7-9%, quarterly liquidity, and a diversified pool of real estate-backed loans, this fund is an excellent complement to equity investing.

While dividend stocks like Pfizer can be an excellent way to build wealth through compounding, investors should also consider alternative high-yield investments like Ascension Income Fund and the Private Credit Fund has arrived to further diversify your portfolios and maximize your returns. By combining long-term dividend growth with high-yield real estate debt investments, investors can create a resilient, income-generating portfolio capable of withstanding any market condition.

This article Invest $50K in This Stock to Become a Dividend Millionaire in 10 Years originally appeared in Benzinga.com

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