Dividend investing is as old as the stock market itself, dating back to the 17th century when the Dutch East India Company first distributed profits to its shareholders. The beauty lies in its simplicity: invest in established companies, receive dividends and either pocket the cash or reinvest it to accumulate more shares. Investing in companies that consistently grow their dividends can be particularly appealing, as the compounding effect of reinvested dividends can significantly enable wealth growth over time. This practice quickly became a cornerstone of investing, offering a tangible return and attracting those in pursuit of steady income.  

Traditionally, the strategy has been dominated by blue-chip companies — market stalwarts in sectors such as utilities, consumer goods and finance. These firms, known for their robust balance sheets and consistent earnings, have weathered economic fluctuations and reliably rewarded shareholders with regular payouts. In contrast, smaller and rapidly growing companies tended to eschew dividend payouts, opting to reinvest capital into their business instead. This arguably fanned the erroneous belief that income and capital growth were mutually exclusive strategies. But is it still the same old play?

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