Over five general ledger accounts years, just 18 per cent of your total return comes from share price growth, with dividends making up the rest. In the long run, it is the compounding effect of reinvesting dividends that really makes you rich. Say you invested £100...
Bookkeeping
Compound interest Albert Einstein
He was a pretty smart guy, so it's fair to assume that there's some wisdom in that assertion. Regardless of the specific context of that quote, Einstein astutely cited the consequential power of compound prepaid insurance interest in finance, investing, and economics....
Compound interest Albert Einstein
"That is slowly changing. Japanese companies are starting to pay income. So are many in China and the Far East." First, the yield, which is calculated as the dividend payout divided by the market valuation of the company. If the dividend is $5 and the company is...
What Albert Einstein knew about investing
Albert Einstein was arguably one of the most brilliant thinkers in the twentieth century. Einstein might have more to offer today’s thinking saver than just compound interest. Whether he said these words or something similar is relevant only to purists who say serious...
Compound interest Albert Einstein
Manage your portfolio carefully to ensure the taxman isn't taking a cut of your annual dividend income. This is less of a problem if you hold your money offshore, but you may need to seek tax advice. A stock that yields 6 per cent and raises its dividend by 5 per cent...