Read? How to become rich in stocks??? (12)
Active Trading or Long-term Investing?
Superior return for long-term investing always assume successful re-investing of dividends.
Can we always assume that we can successfully re-invest our accumulated dividends over the years?
Uncle8888 has decided to spend some time to investigate it.
Is this assumption of re-investing dividend possible in real life investing for retail investors like Uncle8888?
Lucky, Uncle8888 has one real-life example to share in the cyberworld.
His Kep Corp!
Uncle8888 has three positions in Kep Corp.
18 Sep 2001: $1.32
26 Mar 2004: $3.22
20 Jul 2007: $12.14 <--- Sinful one!!! Waiting to repent!!!
Total dividends collected from 18 Sep 2001 to 26 Mar 2004 was enough to re-invest the dividend as second position in Kep Corp at $3.22 in 26 Mar 2004.
Total dividends collected from 1st and 2nd position from 26 Mar 2004 to 20 Jul 2007 was enough to re-invest the dividend as 3rd position in Kep Corp at $12.14 in 20 Jul 2007
As of yesterday market closing share of Kep Corp at $11.29
Total Return = Total Dividends collected + Capital Appreciation at yesterday market closing price of Kep Corp at $11.29
= 1,657% over 11 years of long-term investing with dividends re-invested.
Right and Hold is King!!!