This is a great article that illustrates one of the best ways for small investors to accumulate wealth over long-term through dividend reinvestment.
As I invested a litttle in the market, I came up with my own conclusion that quality dividend, rather than sell-buyer-agreed market cap, is the true reflection of intrinsic value of a company. Through dividend reinvestment, we get a portion of intrinsic value realized from a company, reinvest it back to the company and get it back again. This continuous circulation of intrinsic value between an investor and a company appears to create something more than simple compounding.
After a few mistakes, I decided to stick to quality-dividend company and divident reinvestment.
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This is a great article that illustrates one of the best ways for small investors to accumulate wealth over long-term through dividend reinvestment.
May 22 13:00 pm
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All Comments by tshk1221 »Dividend Investing vs. Trading [View article]
As I invested a litttle in the market, I came up with my own conclusion that quality dividend, rather than sell-buyer-agreed market cap, is the true reflection of intrinsic value of a company. Through dividend reinvestment, we get a portion of intrinsic value realized from a company, reinvest it back to the company and get it back again. This continuous circulation of intrinsic value between an investor and a company appears to create something more than simple compounding.
After a few mistakes, I decided to stick to quality-dividend company and divident reinvestment.