The Power of Reinvesting Dividends: How Wealth Compounds Over Time

Many think of investing as capital appreciation, i.e. buying low and selling high.However, this is only one side of wealth accumulation. Often underestimated is the power of dividends and dividend reinvesting.Instead of merely using dividends as cash payouts, reinvesting dividends creates a snowball effect where wealth grows at an accelerating pace without further cash outlay from you.Why Reinvesting Dividends MattersDividends are real, tangible returns that put cash in an investor’s hands. When reinvested, ...