Most of us are familiar with Einstein's famous quip that compound interest is one of the most powerful forces in the universe. In these days of low interest rates and extreme stock market volatility, this truism may be playing a role in the current infatuation with bonds and other long-term interest-bearing instruments. But Einstein had it wrong. What is true about interest can be even more true for stock dividends.You may think that I am comparing apples to oranges because interest payments on bonds are generally fixed while stock dividends are discretionary and can rise or fall with the fortunes of a company. All true, but during the financial crisis even bond interest payments weren't safe.
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