Not all stocks offer compound interest. To earn compound interest on stocks, you should look for stocks that pay dividends.
A corporation will pay its shareholders dividends, which represent a fraction of its profits.
Companies that pay dividends often do so on a regular basis, which means that you can reinvest those dividends to earn compound interest.
One of the key ways to earn compound interest on stocks is to reinvest dividends.
When you reinvest dividends, you are using that money to buy more shares of the stock.
This means that your investment is growing not only because the stock price is increasing, but also because you are adding more shares to your portfolio.
This may result in a considerable increase in your investment over time.
Earning compound interest on stocks requires a long-term investing strategy.