'Oh my God': This secretary in Illinois built a $7M fortune starting with $180. Here is the 1 powerful technique that made Grace Groner rich — and can change your life too

No lotto tickets required.

Businesswoman working on computer in the office

KieferPix/Shutterstock

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.

By Jing Pan Nov. 09, 2023

Grace Groner worked as a secretary for medical device giant Abbott Laboratories for 43 years. She lived in a tiny one-bedroom cottage, didn’t own a car and bought her clothes at rummage sales.

So when she passed away in 2010 at the age of 100 and left her estate to her alma mater, Lake Forest College in Illinois, the story made headlines. "Oh, my God," the school’s president said after finding out the amount, the Chicago Tribune reported.

Don't miss

Millions of Americans are in massive debt in the face of rising rates. Here's how to get your head above water ASAP
Golden years security: Unveiling 2 powerful ways gold can safeguard your retirement wealth in today's uncertain economy
Big box stores are getting away with overcharging their customers — use this app to instantly get the best deals when you're shopping online

Groner built her wealth using a very simple strategy. While she was working at Abbott in 1935, she decided to purchase three shares of the company. At the time, they were trading at around $60 each, for a total investment of $180 — a fair amount of money back then, but far from an extravagant investment.

She held on to those shares. When the stock split, she didn’t sell them. When the company paid dividends, she used the cash to buy more shares of Abbott.

Fast forward decades later and that small $180 investment had grown to more than $7 million.

The strategy for people who want to earn passive income from stocks is simple, but powerful: Find stocks that pay strong dividends, let them sit and reinvest the regular payouts.

Of course, not all dividend stocks are the same. Here’s a look at three companies with long track records of paying reliable — and increasing — dividends.

Coca-Cola

Coca-Cola (KO) is a classic example of a recession-resistant business. Whether the economy is booming or struggling, a can of Coke is affordable for most people.

The company’s entrenched market position, massive scale, and portfolio of iconic brands — including names like Sprite, Fresca, Dasani and Smartwater — give it plenty of pricing power.

Add solid geographic diversification — its products are sold in more than 200 countries and territories around the globe — and it’s clear that Coca-Cola can thrive through thick and thin. After all, the company went public more than 100 years ago.

More impressively, Coca-Cola has increased its dividend for 60 consecutive years. The stock currently yields 2.89%.

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Get Started

Johnson & Johnson

With deeply entrenched positions in consumer health, pharmaceuticals and medical devices markets, healthcare giant Johnson & Johnson (JNJ) has delivered consistent returns to investors throughout economic cycles.

Many of the company’s consumer health brands — such as Tylenol, Band-Aid, and Listerine — are household names. In total, JNJ has 29 products each capable of generating over $1 billion in annual sales.

Read more: Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here's how.

Not only does Johnson & Johnson post recurring annual profits, but it also grows them consistently: Over the past 20 years, Johnson & Johnson’s adjusted earnings have increased at an average annual rate of 8%.

The stock has been trending up for decades, all while returning an increasing amount of cash to shareholders. JNJ announced its 60th consecutive annual dividend increase last April and now yields 2.88%.

Procter & Gamble

Procter & Gamble (PG) has an even longer dividend growth track record than Coca-Cola and Johnson & Johnson: the company has raised its payout to shareholders for 66 consecutive years.

That streak is a testament to its entrenched position in the consumer staples market. P&G has a portfolio of trusted brands like Bounty paper towels, Crest toothpaste, Gillette razor blades and Tide detergent.

These are products that households buy on a regular basis, regardless of what the economy is doing. As a result, the company can deliver reliable dividends even in tough times.

The latest dividend hike was announced in April 2022, when the board of directors approved a 5% increase to the quarterly payout to 91.33 cents per share. The stock currently yields 2.41%.

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

SmartFinancial can help you do just that. SmartFinancial’s online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

About the Author

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

What to Read Next

4 ways to hedge against inflation

Make your portfolio inflation-proof.

By Jing Pan

13 best investing podcasts for 2023

The best podcasts for everyone from investing newbies to stock market savants.

By Em Norton

The Technology That Grows Your Money as You Sleep

What's an automated investment adviser? A way computers can do all the work to make money with your money.

By Shannon Quinn

How to invest in apartment buildings

While it can be a lucrative investment, be sure to understand the pros and cons of investing in apartment buildings.

By Tom Blake

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.

This is an exclusive story from our newsletter — subscribe for more