Investment returns do not come only from share-price gains. Dividends provide cash returns, capital gains come from earnings or valuation growth, and compounding comes from reinvesting returns.
Dividends provide visible cash flow
Stable dividends can make holding easier, but payouts must be supported by real cash flow.
Compounding needs time and discipline
The effect of compounding usually becomes clear over long periods. Frequent trading, chasing prices and excessive concentration can weaken it.
