Day 2: The Dividend Key – Real Return Comes from Dividends
In yesterday's post on The Dividend Key, the importance and value of reinvested dividends was presented. Today, I am going to present the findings of a study by Robert D. Arnott that broke down investment returns into their individual components. The study looked at three sources of returns for investors: 1. Inflation - the amount a stock grows just through inflationary trends 2. Valuation expansion - the company becomes more valuable and therefore so does the stock price 3. …
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