Casual Articles
#1 in Business Subscribe Email Print

You are here: Home > Finance > Stocks Mutual Funds > Reinvesting Dividends - Why You Should

Tags

  • clients
  • investment
  • happens
  • dividends automatically
  • original dividends

  • Links

  • Don't Push!
  • One Man's Secrets to Successful Online Dating
  • Pregnancy Test
  • Casual Articles - Reinvesting Dividends - Why You Should

    Why Don't You Have Ten Times as Many Clients? You Could!
    You know that hundreds, if not thousands, of people want and need your products and services. You're spending good money on advertising and mailings and you have a great looking website up, but you're still not getting all the clients you want or could handle. Why aren't more people responding
    vidends have DRIP (dividend reinvestment) plans. These plans allow you to sign up to have your dividends automatically reinvested in more shares of stock. In addition, most of these plans are offered as a free service to shareholders and they will purchase fractional shares. Of course, if a company does not have a DRIP plan it might not be practical for you to reinvest dividends
    Option ARM
    An ARM offers low adjustable interest rates with the security of a fixed minimum payment. With ARMs, you have four different payment options each month. ARM mortgages give you flexibility that is unmatched by virtually any other home loan product available in today's market. If your budget is
    First of all, I am going to briefly describe what dividends are. Dividends are simply payments made to stockholders on a per share basis. Usually dividends are paid in cash but occasionally a company may issue a stock dividend (you would be given more shares of stock usually based as a percentage). Some companies issue dividends on a per year basis while the majority of companies issue dividends quarterly. Now that you know more about what a dividend is, let's take a look at why it is so important to reinvest them.

    Let me give you an example: $5,000 invested in Altria (MO) at the beginning of 1976 would be worth about 1.4 million today with all dividends reinvested. Now if you take the same $5,000 investment from 1976 but do not reinvest dividends, the total value today is only $375,000, over a 1 million dollar difference by not reinvesting dividends. Furthermore, the difference is not because Altria has paid you over a million dollars in dividends over 30 years. What happens when you reinvest your dividends is that you gain more shares of stock allowing you to compound the return of your original dividends. Not only do you gain extra value when the shares go up, you also will be earning dividends off previous dividends that have been reinvested into stock. Over time as the stock price fluctuates, you will be gaining more shares when the price is low, and fewer shares when the price is high. In effect, you are dollar cost averaging with your reinvested dividends.

    Most companies that pay dividends have DRIP (dividend reinvestment) plans. These plans allow you to sign up to have your dividends automatically reinvested in more shares of stock. In addition, most of these plans are offered as a free service to shareholders and they will purchase fractional shares. Of course, if a company does not have a DRIP plan it might not be practical for you to reinvest dividends

    The Knowledge Broker & How to Speed up ERP Selections
    Think about the following project to initiate. A company is to select a new software system; for example an Enterprise Resource Planning, or ERP system.Finding ERP suppliers is not that hard. Internet is a willing environment to organize this preliminary step in the selection process. Th
    s issue dividends quarterly. Now that you know more about what a dividend is, let's take a look at why it is so important to reinvest them.

    Let me give you an example: $5,000 invested in Altria (MO) at the beginning of 1976 would be worth about 1.4 million today with all dividends reinvested. Now if you take the same $5,000 investment from 1976 but do not reinvest dividends, the total value today is only $375,000, over a 1 million dollar difference by not reinvesting dividends. Furthermore, the difference is not because Altria has paid you over a million dollars in dividends over 30 years. What happens when you reinvest your dividends is that you gain more shares of stock allowing you to compound the return of your original dividends. Not only do you gain extra value when the shares go up, you also will be earning dividends off previous dividends that have been reinvested into stock. Over time as the stock price fluctuates, you will be gaining more shares when the price is low, and fewer shares when the price is high. In effect, you are dollar cost averaging with your reinvested dividends.

    Most companies that pay dividends have DRIP (dividend reinvestment) plans. These plans allow you to sign up to have your dividends automatically reinvested in more shares of stock. In addition, most of these plans are offered as a free service to shareholders and they will purchase fractional shares. Of course, if a company does not have a DRIP plan it might not be practical for you to reinvest dividends

    Traffic Exchanges: Why You Should Stear Clear
    There are many very effective ways to advertise your business online and equally, there are some highly dubious methods too!While I usually prefer to focus on positive subjects for my articles, the merry-go-round of the traffic exchange "industry" is something I feel I have a duty to war
    , the total value today is only $375,000, over a 1 million dollar difference by not reinvesting dividends. Furthermore, the difference is not because Altria has paid you over a million dollars in dividends over 30 years. What happens when you reinvest your dividends is that you gain more shares of stock allowing you to compound the return of your original dividends. Not only do you gain extra value when the shares go up, you also will be earning dividends off previous dividends that have been reinvested into stock. Over time as the stock price fluctuates, you will be gaining more shares when the price is low, and fewer shares when the price is high. In effect, you are dollar cost averaging with your reinvested dividends.

    Most companies that pay dividends have DRIP (dividend reinvestment) plans. These plans allow you to sign up to have your dividends automatically reinvested in more shares of stock. In addition, most of these plans are offered as a free service to shareholders and they will purchase fractional shares. Of course, if a company does not have a DRIP plan it might not be practical for you to reinvest dividends

    Identifying Your Niche Market
    The internet is a big place, but even so, it,s not big enough to accommodate everyone who wishes to be part of the general internet mainstream. For instance, if you wish to set up an online dating service, you are going to be competing with a lot of other dating sites. The same degree of satu
    you gain extra value when the shares go up, you also will be earning dividends off previous dividends that have been reinvested into stock. Over time as the stock price fluctuates, you will be gaining more shares when the price is low, and fewer shares when the price is high. In effect, you are dollar cost averaging with your reinvested dividends.

    Most companies that pay dividends have DRIP (dividend reinvestment) plans. These plans allow you to sign up to have your dividends automatically reinvested in more shares of stock. In addition, most of these plans are offered as a free service to shareholders and they will purchase fractional shares. Of course, if a company does not have a DRIP plan it might not be practical for you to reinvest dividends

    Guides and What to Consider When Starting an Internet Home Based Business
    The attraction of an Internet home based business is very strong for anyone. You are your own boss and you eliminate the need for the daily commute. But perhaps the strongest attraction could very well be the strongest distraction as well, your family. If you have a big family with lots of smal
    vidends have DRIP (dividend reinvestment) plans. These plans allow you to sign up to have your dividends automatically reinvested in more shares of stock. In addition, most of these plans are offered as a free service to shareholders and they will purchase fractional shares. Of course, if a company does not have a DRIP plan it might not be practical for you to reinvest dividends if you have to pay a commission each time. In most cases, you are still required to pay taxes on dividends even if you don't receive them as cash. Check with your tax professional and plan accordingly for taxes on the dividends. Finally, dividend reinvesting works best when you are investing for the long term. This allows more time for your investment to compound. If you are looking at a shorter term outlook, dividend reinvestment may not be for you.

    HTTP = HTML link (for blogs, profiles,phorums):
    <a href="http://www.casualarticles.com/article/116962/casualarticles-Reinvesting-Dividends--Why-You-Should.html">Reinvesting Dividends - Why You Should</a>

    BB link (for phorums):
    [url=http://www.casualarticles.com/article/116962/casualarticles-Reinvesting-Dividends--Why-You-Should.html]Reinvesting Dividends - Why You Should[/url]

    Related Articles:

    6 Creative Questions To Move From HOW Are You To WHO Are You

    Wholesale Products: Finding the Best Wholesale Products

    Starting Your Own Affiliate Program, Part One

    Bookmark it: del.icio.us digg.com reddit.com netvouz.com google.com yahoo.com technorati.com furl.net bloglines.com socialdust.com ma.gnolia.com newsvine.com slashdot.org simpy.com shadows.com blinklist.com