Self-Reliance and Self-Sufficiency
key words: ISKCON, Srila Prabhupada
The stock market delivers 2 key benefits to long-term investors: rising share prices and dividends. Dividends seem irrelevant during manic periods when stock prices rise sharply, e.g. during the technology bubble of the late 1990s. However, at Vaishnava Financial Independence, we transcend short-term thinking and instead, focus on enduring, time-tested fundamentals.
Broadly diversified index funds pay higher and higher dividends over time. The weak or dying companies, which obviously cannot sustain their dividends, are removed from the stock market index and replaced with new, vibrant companies. Survival of the fittest ensures that the index is composed of powerful companies that are well-equipped to grow their earnings and dividends.
If dividends are used to purchase additional stock shares i.e. reinvested, they generate a substantial portion of stocks’ long-term total return. Stock index funds deliver dividend growth and strong long-term total returns.
Please read the full article: Dividends: A Key Driver of Stocks’ Long-Term Total Returns
Further Reading
Enduring Value of Stock Market Indexes and Land: Vaishnava Stock Market, Investing, Finance Series
Srila Prabhupada on the Stock Market: Vaishnava Stock Market, Investing, Finance Series
Enlightened Investing: Vaishnava Stock Market, Investing, Finance Series
Austerity and Financial Independence: Vaishnava Stock Market, Investing, Finance Series
Saving is Superior to Speculation: Vaishnava Stock Market, Investing, Finance Series
A Place of Worship: Vaishnava Stock Market, Investing, Finance Series