Friday Morning Coffee Nr. 72: Paid for waiting

300819 Friday Morning Coffee

Friday Morning Coffee Nr. 72: Paid for waiting

While looking at the daily fluctuations of the stock prices, investors sometimes forget that dividends are a big component of their investment results in the equity markets in the long run. For example, between 1926 to 2015, reinvested dividends explained an impressive 40% of the nominal total return of the S&P 500, a stellar 4% annual return compounding over 90 years ! ( source : Ibbotson, Standard & Poors ).