Week 28 Day 5: Reinvestment: The Silent Multiplier

When your investments pay dividends, reinvesting them (buying more shares) creates a compounding loop: more shares generate more dividends, which buy more shares, which generate more dividends. Over d...

When your investments pay dividends, reinvesting them (buying more shares) creates a compounding loop: more shares generate more dividends, which buy more shares, which generate more dividends. Over decades, reinvested dividends account for the majority of total stock returns.