Comments on: Hey, where did those 4 cents come from? http://www.bluntmoney.com/hey-where-did-those-4-cents-come-from/ Wed, 12 Oct 2011 07:20:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Matt http://www.bluntmoney.com/hey-where-did-those-4-cents-come-from/comment-page-1/#comment-38004 Matt Thu, 22 May 2008 20:13:23 +0000 http://www.bluntmoney.com/hey-where-did-those-4-cents-come-from/#comment-38004 Dividends are what I would love to live off of someday. But until that cold day in hell arrives its part of what my mutual funds pay out. For me everything is put right back into the stock (often called a DRIP - Dividend Re Investment Plan I think). For the handful of stocks that I still own I've managed to use this to get myself a bunch of essentially free stock. Dividends are what I would love to live off of someday. But until that cold day in hell arrives its part of what my mutual funds pay out. For me everything is put right back into the stock (often called a DRIP – Dividend Re Investment Plan I think). For the handful of stocks that I still own I’ve managed to use this to get myself a bunch of essentially free stock.

]]> By: Bill http://www.bluntmoney.com/hey-where-did-those-4-cents-come-from/comment-page-1/#comment-38002 Bill Thu, 22 May 2008 16:47:30 +0000 http://www.bluntmoney.com/hey-where-did-those-4-cents-come-from/#comment-38002 Ah yes, dividends. The little paybacks that keep on giving. I love dividends, even though I have to keep track of them and pay taxes on them. Why? Because, over the long haul, they really increase my returns. Especially if you reinvest the dividends into buying more stock. This way, the dollar cost of your stock decreases. And I'm talking the real long haul - years, not days or weeks or months. To show just how powerful dividends can be, here's some info that I found in an article by John Waggoner on USAToday.com from 2001 (OK, it's old. But it still shows the power of dividends.) Here's the paragraph that really caught my eye: "In fact, you'd be silly not to look at dividends when you invest. Dividends are an enormous part of the stock market's return over time. The Standard & Poor's 500-stock index has risen 1,160% in the past 30 years. Toss in reinvested dividends, however, and you have a 3,521% gain." That's amazing. So, thanks for reminding us of dividends today. This great post. I dig your site. Keep posting. Bill Ah yes, dividends. The little paybacks that keep on giving.

I love dividends, even though I have to keep track of them and pay taxes on them.

Why? Because, over the long haul, they really increase my returns. Especially if you reinvest the dividends into buying more stock. This way, the dollar cost of your stock decreases. And I’m talking the real long haul – years, not days or weeks or months.

To show just how powerful dividends can be, here’s some info that I found in an article by John Waggoner on USAToday.com from 2001 (OK, it’s old. But it still shows the power of dividends.) Here’s the paragraph that really caught my eye:

“In fact, you’d be silly not to look at dividends when you invest. Dividends are an enormous part of the stock market’s return over time. The Standard & Poor’s 500-stock index has risen 1,160% in the past 30 years. Toss in reinvested dividends, however, and you have a 3,521% gain.”

That’s amazing.

So, thanks for reminding us of dividends today. This great post. I dig your site. Keep posting.
Bill

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