JPMAM launches calculator to show power of compounding

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J.P.Morgan Asset Management (JPMAM) has launched a calculator for advisers to demonstrate to clients the power of ‘compounding' when reinvesting their dividend income.

The Dividend Reinvestment Calculator shows the difference between total return and price return over any given time period and region, demonstrating the additional growth generated by automatically putting dividends back to work in the markets. JPMAM head of intermediary sales Michael Parsons said reinvested dividends had proven the single biggest driver of equity returns in the UK, US and Europe over the long term. "Investors tend to forget or overlook that income-oriented strategies can also be a source of capital growth," he said. The calculator joins a suite of tools available ...

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