Reinvesting dividends will pay dividends - Equiniti

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Two thirds of UK investors say they are more likely to reinvest share dividends than taking payments in cash, recent findings suggest.

Research carried out by Equiniti surveying over 1,300 active investors in late 2010 found 67% displayed a tendency to reinvest dividends - a long-term savings strategy paving for a decent future "nest-egg", says the share registration company. "I can understand why some people may take the money but taking a long-term view of shares and dividends with regular top-up investing, perhaps through a direct debit arrangement, is one good way of building up a reasonable nest egg for the future." says Equiniti Investment Services director Mark Taylor. A dividend re-invested pre-2010 in the FT...

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