I came across this quote from John D. Rockefeller while listening to an audio Podcast from Questor (Garry White of The Telegraph) called Questor Income Tips, and it sums up the Amateur Investor attitude to investing perfectly.
So when more dividend income appeared in my account with The Share Centre this morning – this time from St James’s Place (STJ) , a dividend of 3.2p per share – I quickly looked to reinvest the dividend…
I chose to reinvest the STJ dividend into ITV shares, reducing my average buying price of ITV from 63.64p to 62.96p
ITV are forecast to pay dividends of 2.4p in 2012, so my ITV holding is forecast to yield 3.81% based on my current average buying price of 62.96p. However, new investors buying in at the current price of 54.80p should see a yield of 4.38p
OK, so my ITV shares might only yield a forecast 3.81%, but remember that today’s purchase was “free”, courtesy of dividend income.
So in the words of J.D – “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in“.
OK, so it’s not the ONLY THING that gives me pleasure. But you’ve got to admit, “free” income is great isn’t it 🙂
For more information on dividend income and dividend re-investing you might like to read the article “Dividend income and the Monevator HYP” (which I discovered when searching for other references to the J. D. Rockefeller quote) on the excellent Monevator website.