Dividend reinvestment and regular investment

Recent events have provided a timely reminder to investors as to the volatility of stock markets

There are two important aspects of investing that are often ignored but which can make a vital difference to the returns from equity investment and play a particularly important role in times of market volatility. These are reinvesting dividends and investing on a regular basis These fundamental aspects of equity investing can be accessed easily by investing in investment trust companies. Reinvesting dividends Equity market returns come from two components: capital returns from movement in share prices; and income returns from dividends paid. Inevitably, it is the capital return c...