Read the LinkedIn post on dividends. Understand the math and his point, but disagree. Many years ago, I purchased a couple shares of stock in a international company whose headquarters were/are in the State I live in. They have a DRIP which I opted into. I am guessing they are probably not considered a "high dividend" company, but they have increased their dividend every year that I have owned the stock (over 35 years). Am I wealthy because of it? No. But it is a nice little stash that I put very little into thanks to compounding.
Thanks for sharing your thoughts on the dividend illustration, Suzie.
I'm not suggesting - nor is the Linkedin post - that dividends aren't an important part of many investments' returns over time.
Dividends play a BIG role in long term stock returns.
However, the illustration is just making the point that dividends aren't created out of thin air. The stock price is adjusted down by the amount of the dividend when it's paid.
Many people don't understand this and seem to believe that stock dividends are paid without any impact to the stock price or underlying company.
Read the LinkedIn post on dividends. Understand the math and his point, but disagree. Many years ago, I purchased a couple shares of stock in a international company whose headquarters were/are in the State I live in. They have a DRIP which I opted into. I am guessing they are probably not considered a "high dividend" company, but they have increased their dividend every year that I have owned the stock (over 35 years). Am I wealthy because of it? No. But it is a nice little stash that I put very little into thanks to compounding.
Thanks for sharing your thoughts on the dividend illustration, Suzie.
I'm not suggesting - nor is the Linkedin post - that dividends aren't an important part of many investments' returns over time.
Dividends play a BIG role in long term stock returns.
However, the illustration is just making the point that dividends aren't created out of thin air. The stock price is adjusted down by the amount of the dividend when it's paid.
Many people don't understand this and seem to believe that stock dividends are paid without any impact to the stock price or underlying company.