I’m far from a die-hard dividend investor, but the practical
wealth-generating potential of reinvesting dividend payments is
impossible to ignore. So while a significant portion of my personal stock
holdings are small caps, I’ve always made sure to own a healthy number of
dividend-paying stocks too (including small, mid and large caps).
The carrot here is that using very conservative assumptions and
buying household names, it’s possible to double your money over 20 years
– even if your stock trades totally flat.
I’ve recently realized that not many people understand how this is
possible. In fact, some of my closest friends didn’t know how to reinvest
their dividends to begin with