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Dividend Reinvestment Over Time

If you are here at this site, or any of the other sites as part of the network, chances are you are interested in dividend investing in one form or another. With that in mind, then I would like to present one of my favorite charts with respect to dividend investing. It has to do with the concept of dividend reinvestment and the dramatic power it has over investment results in a portfolio. In essence, by ensuring an investor reinvests his/her dividends the improvement in a portfolio is profound. Here is the chart:

As you can see, since 1900 the equity returns for both the US and UK markets have been improved by approximately 5% by simply reinvesting those dividends. I think the chart speaks for itself. It is why I continue to reinvest my dividends.

This article was written by The Dividend Guy. You may email questions or comments to me at