jonney38
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- May 23, 2016
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This stock market drop illustrates the value of reinvesting dividends, using dividends to buy more stock, if one is able to do that. Dividends seem like tiny rewards for investing. They are around 2% while stock market gains can average 8%. The thing about reinvesting dividends is they are persistent. So, right now dividends will be buying while prices are low.
Statistically, about 1/3 of stock market gains are attributed to dividends when they are reinvested. I have seen this with my own stocks.
Statistically, about 1/3 of stock market gains are attributed to dividends when they are reinvested. I have seen this with my own stocks.
