Dividends, plus the passage of time, can make a stock price chart look silly because of the easily understated nature of dividends in the wealth-building process.
That’s it. That’s the secret to building wealth. It’s amazing how much different investing appears when you only look at a stock chart (such as you typically see on CNBC) and then step back and adjust it for the passage of time to get a full picture of a company’s total returns.
Because dividend payouts typically amount to 2%, 3%, 4%, or 5% in a given year, they can become quite easy to neglect, perhaps regarded to the untrained eye with the same appreciation given to a dollar bill found in a seat cushion.