Build up retirement nest egg over long term

Equity markets tend to bounce around in response to daily news flow, but those who are genuinely interested in creating a long-term store of value from investing need to think differently.

Obsessing about what happens in a day or a week is a poor use of brainpower when setting out to develop a portfolio that can provide the material means that can finance a future beyond work. In this context, dividend-paying equities are hugely important.

Over the past 100 years, dividends have accounted for about 40% of the total returns from equity markets. While it may be more exciting to read and write about short-term shifts in share prices, it is the regular and consistent payment of dividends that matter over an extended time period.