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Reinvest dividends to accelerate growth from "summary" of Investing Basics for Beginners by Razaq Adekunle
When you receive dividends from your investments, you have a choice to make. You can either take the dividends as cash or reinvest them back into the investment. Reinvesting dividends means using the dividends you receive to buy more shares of the same investment. This may not seem like a big deal at first, but it can have a significant impact on the growth of your investment over time. By reinvesting dividends, you are essentially compounding your returns. This means that not only are you earning returns on your original investment, but you are also earning returns on the dividends that have been reinvested. Over time, this can result in exponential growth of your investment. Whe...
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