How Reinvesting Pays on the Long Run*

Ambrose Here Again,

When a stock you own pays dividends, you have two options: pocket the cash and use it as you would any other income, or reinvest it by purchasing additional shares of stock. Though having a little extra cash on hand may be appealing, reinvesting your dividends can really pay off in the long run.

To the Basics, Companies pay dividends to their shareholders to reward them for their investments and continued support. Dividends are taken from a company's retained earnings, which is the amount of cumulative profits that remains after accounting for all expenses and any reinvestment in the company's expansion. Though dividends can be issued in shares of stock, they are commonly issued as a cash payment.

However, reinvesting your dividends simply means purchasing additional shares of stock with the money you receive. On most trading platforms, you can choose to have this done automatically on your behalf. Proponents of this tactic highlight the fact that, by purchasing new shares of a stock that you know pays dividends, you can grow your investment at a much quicker rate than if you pocket your dividends and rely solely on capital gains to generate wealth.

But it is strictly for those who want to do long-term investments which is still okay. However, if you are thinking of a short-term or immediate return on investment, then it is recommended that you get

*1. Go for a consistent Stock Market training.*
*2. Carry out an intensive Research*
*3. Register for membership where stockbrokers share stocks to buy and stocks to sell decisions based on numbers not emotion and hypes*

However, the (1) and (2) consumes a lot of time, money and unnecessary resources which are not redeemable. The (3) does not because I have  done everything for you which is what my *Buying and Selling Signal Premium Membership stands for. Register NOW. It is Affordable. Call 08028164085,08032055467 Now to Get Started*

Dedicated to Your Financial Success,
Ambrose Omordion