02-12-2014, 10:46 PM
(This post was last modified: 02-12-2014, 10:46 PM by Dividend Watcher.)
Oh my, if this ain't a "it depends" situation.
If it's cash for a purpose or your emergency fund, probably. Total received interest would be (assuming no compounding) $3750. If you were able to compound it at each year end, you should end up with $4144.22 total interest received.
If it's play money for investment, a 5% yielding stock (T or SO maybe?) with 2% dividend growth rate should return around $3981.09 in dividends without compounding but then who knows what the final value Mr. Market would place on it.
So yeah, it sounds like a fair deal.
How's that for a definitive answer?
If it's cash for a purpose or your emergency fund, probably. Total received interest would be (assuming no compounding) $3750. If you were able to compound it at each year end, you should end up with $4144.22 total interest received.
If it's play money for investment, a 5% yielding stock (T or SO maybe?) with 2% dividend growth rate should return around $3981.09 in dividends without compounding but then who knows what the final value Mr. Market would place on it.
So yeah, it sounds like a fair deal.
How's that for a definitive answer?
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan