The Power of Dividends
One other guy who likes dividends is Jeremy Siegel. His book, The Future for Investors, stresses the importance of reinvesting dividends in a portfolio. He states:
"The power of the basic principle of investor return is magnified when the stock pays a dividend.
Consider this. If earnings are better than expected, that means that the stock is underpriced and purchsing more shares through dividend reinvestment will enhance your returns even more."
Tags: Dividend Investing, Dividends