The following is about the power of reinvested dividends
Dividends are paid in the form
of cash or more shares to shareholders of a company
To reinvest your dividends
means to take all dividends and then use them to buy more shares and over time
you greatly increase the amount of shares you own. More shares = more dividends
= more shares and so on. All this is
accomplished without putting any more money in unless you want to add outside
funds anyway.
I recommend adding more funds over time through a payment
plan it could even be as little as $50 per month.
The article referenced below
explains that 1 share of coke (Ticker KO) if purchased in 1919 at $40 with all
dividends reinvested would be worth 9.8 million in 2012.
There are plenty of ways
to achieve your goals in finance. Patient investing can pay off
if done right.
These are my thoughts and opinions you have to find what works best for you.
Link to the article
I have never owed Coke stock
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