Do you recommend reinvesting the dividends I receive from blue chip stocks I own?
Definitely. The return you get by reinvesting dividends is much greater than you get by receiving cash dividends. The Standard & Poor's Composite Index of 500 widely held common stocks (commonly know as the S&P 500) has increased more than 400% during the past 15 years. If dividends from these stocks had been being reinvested in purchasing additional shares during this period, the return would have soared to 851 %.
Definitely. The return you get by reinvesting dividends is much greater than you get by receiving cash dividends. The Standard & Poor's Composite Index of 500 widely held common stocks (commonly know as the S&P 500) has increased more than 400% during the past 15 years. If dividends from these stocks had been being reinvested in purchasing additional shares during this period, the return would have soared to 851 %.
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