02-12-2014, 10:46 PM
(This post was last modified: 02-12-2014, 10:46 PM by Dividend Watcher.)
Oh my, if this ain't a "it depends" situation.
If it's cash for a purpose or your emergency fund, probably. Total received interest would be (assuming no compounding) $3750. If you were able to compound it at each year end, you should end up with $4144.22 total interest received.
If it's play money for investment, a 5% yielding stock (T or SO maybe?) with 2% dividend growth rate should return around $3981.09 in dividends without compounding but then who knows what the final value Mr. Market would place on it.
So yeah, it sounds like a fair deal.
How's that for a definitive answer?
If it's cash for a purpose or your emergency fund, probably. Total received interest would be (assuming no compounding) $3750. If you were able to compound it at each year end, you should end up with $4144.22 total interest received.
If it's play money for investment, a 5% yielding stock (T or SO maybe?) with 2% dividend growth rate should return around $3981.09 in dividends without compounding but then who knows what the final value Mr. Market would place on it.
So yeah, it sounds like a fair deal.
How's that for a definitive answer?