One important strategy for long-term investors is dividend reinvestment. Instead of taking the cash dividends paid out by a stock and pocketing them, investors can use those funds to purchase additional shares. Over time, this can significantly increase an investor's total return. By reinvesting dividends, investors can take advantage of compound growth. As more shares are purchased with each dividend payment, the next dividend payment is based on a larger number of shares, leading to a snowball effect of increasing returns. This can help accelerate the growth of an investment portfolio over the long term. Additionally, dividend reinvestment can help smooth out the effects of market volatility. By automatically reinvesting dividends, investors can take advantage of purchasing more shares when prices are low, effectively dollar-cost averaging their investments. In summary, dividend reinvestment is a powerful tool that can enhance the long-term performance of a stock portfolio. By harnessing the power of compound growth and smoothing out market fluctuations, investors can potentially maximize their returns over time.