See what I mean petunia, lets look at it in the case of your...

See what I mean petunia, lets look at it in the case of your holding.

Buy in at $1.79, lets say you bought 4000 shares for a cost of $7,160. You collect the 10c dividend and re-invest.

Now at the moment your down a bit as the price has dropped ex-div. Your holding is now worth $6,760 a loss in a week of $400. However, you will receive a dividend of $400 to make up for this, re-invested at say today's price of $1.69 of which you get a 2.5% discount as well, so your re-invested shares cost $1.65. This means you get 242 shares.

The share price recovers to trade in its normal range of about $1.75 so your 4242 shares are now worth $7,423. It's a pretty simple way to make a 3.5% gain every 6 months and that will compound as your reinvested shares grow.

If DUE has any capital growth, it just exacerbates this scenario even further obviously. even if you were to sell out at what you bought for, $7,593, thats a gain of $433 or 6%. As I said, once you get this compounding, it makes for a pretty good return IMO. I'm happy to date anyway.