The Power of Compound Interest

In the words of the Notorious B.I.G., "If you don't know, now you know!" 

If you are in your teens and reading this post it just may change your life forever! Be prepared for this one simple video below to educate you on the power of compound interest! 

Learning how to multiply your money is what we all should strive for. If you invest in dividend paying stocks each and every week someday you will be living in the lap of luxury and watch your money make money. 

It's time to get serious about your finances. Allow your dividend payments to provide a steady, reliable stream of cash into your Roth IRA stock portfolio.

There is no need to gloat to others once you become wealthy. Just be proud of your wise dividend stock investments, which should include dividend aristocrats PBI, T, HCP, LEG, CINF, ED, KMB, SYY, JNJ, CLX, ABT, EMR, BMS, PG, PEP, AFL, GPC, just to name a few!

Enjoy the Notorious B.I.G.'s flow below. Just as he felt in 1994, with solid dividend investments you too someday can sit back, put your feet up, and enjoy the fruits of your labor. Baby, baby!

"Super Nintendo, Sega Genesis 

When I was dead broke, man I couldn't picture this 

50 inch screen, money green leather sofa 

Got two rides, a limousine with a chauffeur 

Phone bill about two G's flat 

No need to worry, my accountant handles that 

And my whole crew is loungin' 

Celebratin' every day, no more public housin' 

Thinkin' back on my one-room shack 

Now my mom pimps a Ac' with minks on her back 

And she loves to show me off, of course 

Smiles every time my face is up in The Source 

We used to fuss when the landlord dissed us 

No heat, wonder why Christmas missed us 

Birthdays was the worst days 

Now we sip champagne when we thirst-ay 

Damn right I like the life I live 

'Cause I went from negative to positive 

And it's all good!"

PPL Corporation - PPL

PPL Corporation, stock ticker PPL, is a great investment for your Roth IRA stock portfolio. They are an energy and utility holding company. PPL generates electricity from power plants in the northeastern, northwestern and southeastern the United States, markets wholesale or retail energy primarily in northeastern and northwestern portions of the United States, delivers electricity to customers in Pennsylvania, Kentucky, Virginia, Tennessee and the United Kingdom and delivers natural gas in Kentucky.

As of December 31, 2010, PPL's subsidiaries were PPL Energy Supply, LLC (PPL Energy Supply), PPL Electric Utilities Corporation (PPL Electric), LG&E and KU Energy LLC (LKE), PPL Global, LLC (PPL Global), PPL EnergyPlus LLC (PPL EnergyPlus), PPL Generation LLC (PPL Generation), Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU). On November 1, 2010, PPL completed the acquisition of E.ON U.S. LLC from a wholly owned subsidiary of E.ON AG.

Last quarter PPL's earnings grew. Double digit earnings elevated PPL shares up 3.3% last week to a close of $28.45 per share on February 9th, 2012 . Their net income climbed 13% in the fourth quarter of 2011 on better results from their international and Pennsylvania regulated business. PPL earned $401 million last quarter.

PPL management has made smart acquisitions and achieved steady growth. The stock price is currently slightly cheap. PPL is very profitable, pays a sweet quarterly dividend, and should reap the benefits of their acquisitions through potential synergies. Click here to learn more about PPL and check out these stats below:


52 week                24.10 - 30.27
Vol / Avg.       7.48M/4.75M
Mkt cap               $16.45B
P/E                       10.85
Dividend              $0.36/share
Dividend Yield    5.06% (as of 2/9/12)
EPS                      2.62
Beta              0.42
Inst. own      72%

If you own shares of PPL already, click here and sign up for their  Dividend Reinvestment and Direct Stock Purchase Plan. I do not work for PPL and I have no affiliation with PPL. I am just looking out for you.. the Common Man!

Feel free to watch the videos below. I share Adam's view's on PPL, however more importantly Compound Interest. It's the only way to go! Also, learn more about PPL Corporation by watching the additional videos below.

What is Compound Interest?

Welcome back to Dividend Stock Investing For The Common Man! I wanted to bring to your attention a fascinating topic. Drum roll please.. COMPOUND INTEREST. What is Compound Interest? Well, click here to find out.

The great Albert Einstein once stated, “The most powerful force in the universe is compound interest." Because compound interest is a really amazing invention he called it the "8th Wonder". It can work for you, or against you. When you invest, it works for you. When you borrow it works against you!

Reinvest your dividends throughout your working career so you secure maximum compounding. Investing in high yielding dividend stocks is key if you intend to live comfortably during your retirement years. Check out this handy Compound Interest Calculator. Plug in your numbers and use your favorite stock's dividend yield as the "Interest Rate" and also use 30 years in the "Years to Grow" section. Just think of how sweet those dividend payments will be when you are in your early 60s.

Please watch these three videos below. They are a few of my favorite Compound Interest videos available on YouTube. Never underestimate the power of compound interest!