vand wrote:Gerry557 wrote:Neither are investments that don't pay a dividend. Remember you don't have to spend all the dividend you could spend half and reinvest the other half. Equals a growing dividend.
Someone wanting to take a level of dividend will calculate accordingly. Obviously you could buy shares with lower levels of of dividend and let it grow for 30 years and it will effectively become a higher level.
I think up until recently Unilever might have been an example.
Your example is not growing dividend - it's a growing total return by way of reinvesting some of recieved dividend. A growing dividend is just that - a higher payout per share over time.
Whether dividends are re-invested or not, does not affect the total return calculation. The dividend amount has been received whatever you decide to do with it.
Enjoy!
Ian