4 ms·
But you're compounding the 2.5% only with itself. If you had reinvested the dividend back into the stock (common), the return is higher than 48.5%.
by jeffshek 10y ago
But you're compounding the 2.5% only with itself. If you had reinvested the dividend back into the stock (common), the return is higher than 48.5%.
- pesenti 10y agoNo. 1.025^16=1.48 - that's the reinvestment scenario. What you describe, no reinvestment, is just 2.5%*16=40%.