Seeking Alpha
All posts from Seeking Alpha
Seeking Alpha in Seeking Alpha - Read, Decide, Invest.,

Slow Growth Dividend Stocks: To Reinvest Or Not To Reinvest?

In this article, I will be looking to compare whether an income investor should reinvest dividends from a slow-growing dividend company, or use those dividends to purchase shares of a company with high growth. To illustrate how this process works, I will be using IBM (NYSE:IBM) and (NYSE:CRM) as an example. IBM has been a great stock when it comes to dividend growth, however, the last decade has been challenging for IBM as it has seen its revenues stagnate. On the other hand, Salesforce has seen significant growth in the last decade, however, for income investors, CRM would not even be a consideration because the stock does not pay a…