I have been investing in some dividend stocks mainly because saving account rates these days are pathetic. For an emergency fund, earning a percent or two on my investment is fine. But for long-term, it’s lousy.
If you don’t really have an immediate need of the money earned through dividends, it’s advisable to reinvest the amount. And you don’t have to bother about reinvesting process as many broking companies these days offer such service for free. Continue reading