It is normal to think of investing as primarily returning capital gains, but current income should by no means be overlooked because the compounding factor of interest and dividends can be a significant ingredient in the long-term performance of a portfolio. We alluded earlier to the fact that time horizon have shortened with the ability of technology to present us all with instant, quotes, and news. This is a shame because compounding requires a large amount of time, together with the discipline and patience to take advantage of this important investment principle, and that is not within the grasp of most inventors today.
You can read the power of compounding and interest and between compounding and dividends in The Investor's Guide to Active Asset Allocation: Using Technical Analysis and ETFs to Trade the Markets
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