Richest Man in Babylon is a great book about the power of safe investing and compounding. As my readers know, I have a portion of my portfolio dedicated towards dividend stocks, closed end funds and bond funds. Not exciting, unless you like have money sent to you monthly without having to lift a finger!
On all my dividend stocks, as I do not need the income now as I am working, I simply reinvest the dividends and buy more shares. Again, not exciting, not sexy, but it is steadily building wealth. Here is a table showing my collected dividends (with a secret multiplier) and the dividends on the reinvested shares:
|Row Labels||Sum of Cost||Sum of Value||Sum of Dividends||Sum of Gain|
So the way this reads is CSQ has paid $32,830 in dividends. Those shares I bought with the $32,830 are now worth $31,910. But I have also collected $4,969 in dividends on those shares, so I have a net gain of $4,048. Think of that, dividends on dividends. That is great!