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RE: Embrace The Power of Compound Interest
If the long term goal to is create a compounding dividend machine with stocks, I just think the established companies will do the job better since many of them have been increasing their dividends for many years. There are about 20 companies in the S&P that have increased their dividend for at least 50 consecutive years.
Small caps are definitely the place to be if you're looking for growth, but I honestly think the average person should at least have the core of their equities portfolio in dividend paying blue chips. Thanks for the comment and for reading!
My pleasure and thanks for writing...the overall message is very important. And yes, if you're goal is to get dividend income, then i agree that blue chips are the way to go. i just think the message of compounding ought to extend to all value compounding, not just income; e.g. earnings compounding instead of just the dividend distribution component.