Let us break this down 1. You buy a stock 2. Some time passes 3. Your stock yields cash dividends 4. You decide to drip that money over 5. And purchase more of the same stock with the dividends Now let us piece this together; first you buy a stock like IBM, some time passes and IBM yields its yearly cash dividends! Now instead of taking the cash out of the market you decided to “drip” the money over...
How Farming is like Dividends
Things your parents tell you: "Eat your vegetables!", "Don’t stay out pass 2 am!", "Make sure you choose stocks with dividends!" Okay, maybe not that last one. Believe it or not, vegetables and dividends have a lot more in common than you think. Lets take something simple like a famer planting corn. The first step the farmer takes is to pick a plot of land. Picking the right plot of land to plow and...