Dividend reinvesting allows you to receive higher distributions in subsequent quarters and increase your compounding returns. Many investors continue to reinvest their dividend payments until they are ready to live off their dividends and wish to retire.
While you can choose from many dividend-paying stocks, some of them are better than others. Finding stocks that combine respectable yields with consistent rate appreciation can result in good long-term returns. Many corporations raise their dividends each year and continue to reward shareholders with buybacks. These are some of the top dividend stocks to consider for reinvestment plans.
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