Guide section
Why reinvestment matters
Reinvested dividends buy additional shares, which can then produce more dividends later.
That compounding loop can materially increase long-run wealth.
Guide section
Where people mis-model it
Many people accidentally double-count dividends by adding yield on top of a total-return assumption.
The key is to separate price return and yield clearly when you model.
Bottom line
Where this guide should leave you
Reinvestment works best when it is modeled cleanly and paired with a realistic total-return assumption.
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