

ifeoma Uddoh
1.7K posts

@ifyhopee
Christian Innovator. @shecluded, lover, nerd, light, on the route to dying empty. Fellow @HalcyonInspires @echoinggreen



I did a comparative study of dividend reinvestment vs. cash payout (GTCO) This shows the analysis of the impact of reinvesting dividends using GTCO as our primary example. The goal was to see how a ₦100,000 initial investment in January 2021 would perform over five years under two different strategies. Investor A: Cash Out Investor B: Reinvested •Investor A (Cash Out): By keeping their share count fixed and spending all dividends, their 2025 annual income was ₦39,261. •Investor B (Reinvested): By using dividends to buy more shares each year, their 2025 annual income grew to ₦55,378. The reinvestment strategy generated 41% more annual passive income than the cash-out strategy by the fifth year. Core Insights: 1. Unit Accumulation: The strategy was most effective in 2022. While the market was flat and prices were low (~₦21.00), the reinvestment allowed for the acquisition of more "free" units. 2. The Multiplier Effect: Because Investor B entered 2025 with a larger share count (approx. 4,340 units vs. 3,077), they benefited significantly more from GTCO's record-breaking ₦12.76 total dividend. 3.) Efficiency: This 41% increase in income was achieved without the investor contributing any additional capital beyond the initial ₦100,000. Pls reinvest your dividends long term. To get access to FREE research/information for like this pls save/invest on @getladda getladda.com









