It is well-documented that a significant portion of the historical equity returns are a result of reinvested dividends. Performance in any given year is driven by capital appreciation, but long-term returns are largely the result of reinvested dividends. It is important to note that you can reinvest dividends without participating in a formal DRIP plan. However, you can’t reinvest dividends unless the company pays them, and the really good companies increase their cash dividends each year.
Fri. Jul. 17, 2009
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19 Stocks Using Real Cash To Pay Higher Dividends *
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