Principle #3: Harness The Power Of Dividends And Compounding - J.P. Morgan Asset Management
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PRINCIPLE #3: HARNESS THE POWER OF DIVIDENDS AND COMPOUNDING

IS TIME ON YOUR SIDE? IT IS IF YOU USE IT WISELY.

While water and sun will grow a tree, fertilizer can take it to even greater heights. The same goes for reinvesting. Let’s work together to nurture stronger portfolios.

Use dividends to your advantage ACCESS ALL 7 PRINCIPLES   

The power of compounding

The power of dividends and compounding

In this simple illustration, an initial investment of $10,000 in the S&P 500 price return index would have grown to nearly $300,000 since 1970. But if dividend payments were included, reinvested and allowed to compound over time, that same $10,000 investment would be worth more than $1,200,000 today.

Investing in risk assets is critical

Many investors shy away from the stock market, unwilling to take on added risk. But this chart shows a staggering difference in the value of $10,000 invested in a variety of different asset classes over time, ranging from low-risk T-bills to U.S. small cap stocks.

 

 

 

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USE EVERY ASSET CLASS TO YOUR ADVANTAGE

We offer investment strategies covering all asset classes for diversification and risk management to help you and your clients build stronger portfolios.

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Diversification does not guarantee investment returns and does not eliminate the risk of loss. Diversification among investment options and asset classes may help to reduce overall volatility.