Quiz: What Drives Dividend Investing Returns Returns

What does a long dividend growth streak indicate about a company? *

Has demonstrated the ability to navigate various market/economic conditions

The company is committed to rewarding its shareholders via dividends

That it's undervalued

The company's growth is stagnating

Which of the following statements is true about the reinvestment of dividends? *

It slows down the growth of dividends over time

It creates a compounding effect that accelerates the growth of dividends and total returns over time

Dividend reinvesting has no impact on the total number of shares owned by an investor

It doesn't have a negative or positive effect on returns

What is the main advantage of using a dividend reinvestment plan (DRIP)? *

It makes you eligible for receiving special dividends

It guarantees a better price at which dividends are re-invested

It gives you voting rights at shareholder meetings

It simplifies the process of reinvesting dividends

What are the key factors that contribute to the success of a dividend growth investing strategy? *

Starting dividend yield

Dividend re-investment

Successful market timing based on share price movements

Dividend growth

A long dividend growth record guarantees future dividend sustainability *

Yes

No

Yes, if dividends are re-invested

Dividend Growth Investing Course - Building Wealth Through Steady Income