Data sources can be misleading about your returns. Most sources ignore dividends and only show price returns. When a major news network reports what the market did that day, they speak only of price returns. "The Dow went up 118.86 today." The charts on CNBC, Morningstar, Seeking Alpha, Yahoo - they are all price charts. Price-only charts. Your brokerage's displays are probably price charts. Mine are at E-Trade. What if you reinvest dividends? The return picture changes dramatically if dividends are reinvested.
A Berkshire shareholder receives the benefit of this compounding via BRK's share price, which is an interpretation by the market of BRK's business value. As with all stocks, BRK's price goes up and down. An individual investor can set up a Grahamian "investment operation" that follows the same general model. That is what I try to do as a dividend growth investor. I collect cash from my assets, then I redeploy that cash to collect even more next year. That is compounding.
Source: Seeking Alpha
Related Articles:
- 7 Higher-Yielding Stocks With A Low Price To Book
- Don't Forget: Buy And Hold Is Not Buy And Forget
- 5 Stocks With Strong Dividend Growth Metrics
- Are Defense Stocks Good Defensive Stocks?
- International Securities For A Diversified Income Portfolio
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
If you’ve been following this column, you’d know that monthly dividend stocks tend to come from two main types of businesses: real estate an...
-
Late last year, Wall Street had a bit of a panic attack when Fed chairman Jerome Powell suggested this tightening was on autopilot. While th...
-
Are you sick and tired of low interest rates? Certificates of deposit pay next to nothing. Bonds yield only three or four percent a year. Su...
-
These three picks are all up more than 10% so far in 2019. The three themes are LNG, specialized healthcare, and small banks. The yields ran...
-
This company makes a compelling value proposition on the dip for DGI investors. The REIT has strong portfolio stats and a conservative AFFO-...
-
Stocks with high dividend yields can be great, but if a stock has a high dividend yield and also has lots of long-term growth potential and ...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
This company makes a compelling value proposition based on valuation, risk/reward, yield, and upside potential. I added this hotel REIT las...
-
At its opening price of $101 per share on Jan. 7, MSFT stock had a market cap of $782 billion, which made it the most valuable company in th...
-
Before the painful fourth-quarter stock market decline, steady dividend payers probably weren’t foremost in many investors’ minds. After all...
0 comments
Post a Comment
Post a Comment