The power of compounding trough dividends is significant. In Warren Buffets words “It cost 3 times as much as the company is making to put it out of the market”. This “Moat” is what making compounding trough dividends significant. The “Moat” that these types of businesses have makes them to be able to raise their profits, cash flow and dividends over and over again. Just look at the overview below to get an understanding of the power of Moat.
These companies have grown their business by expanding their markets due to their original “Moat” in their markets, because of the “Moat” they were and are able to re-invest their profits expand their business in new markets and delivering returns to their shareholders. That’s the power of compounding trough dividends.