[rocketrod]

Here is a simple example NOT a recommendation to buy.

I bought MO (now called Altria) in Jan 2008. Shortly afterwards they spun off PM (Phillip Morris) with a special dividend so for each share of MO I owned, I received a share of PM.

MO stock price has since appreciated 80%, and in addition I receive a dividend, which has increased from 5.27% to 8.72% on an annual basis.

PM stock price has since appreciated 90%, and in addition I receive a dividend, which has increased from 4.17% to 7.61% on an annual basis.

The investment, with dividends, has more than doubled in 6.5 years.

In hindsight, my only regret is not reinvesting my dividends from the beginning as my returns would have been even better. I have since started re-investing my dividends.