Reinvesting Dividends: Compounding Power
Reinvesting Dividends: Compounding Power
When a stock pays you a dividend (cash reward), you have a choice. You can buy a pizza, or you can reinvest that cash to buy a fraction of another stock slice. If you reinvest, your pool of shares grows, making next year's dividends even bigger!
This is the secret engine behind major compounding wealth growth.
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