I parked my long-term dividend yield stocks like Kep Corp, Semb Corp and DBS in CPF investment account. I was a little "surprised" when I itchy hand go and compute the amount of CPF OA 2.5% interest rate earned on the yearly dividends that I received from Kep Corp since 2001.
Total interests and interest-on-interests (i.e. compound interests) on accumulated dividends locked in CPF OA account is about 52 cents. ROC on initial capital investment on Kep Corp is about 40% over 12 years.
Another good reason for a momentary wide smile!
"Compound interest is the eighth natural wonder of the world and the most powerful thing I have ever encountered." ~ Albert Einstein
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