As attractive as today’s yields may look on certain dividend-paying stocks, they only tell part of the story when you’re choosing names for income. That’s because the real story behind a successful dividend play is the compounding effect of reinvesting – rather than spending down – the income those stocks generate over the long term, which can enhance the total return on your portfolio. “Reinvestment of the dividends is key to maximizing the compounding effect and the total return from the investment,” said Michael Arone, chief investment strategist, U.S. SPDR Business at State Street. “Not simply pocketing the income, but reinvesting it is kind of a powerful compounding effect to total returns.” Boosting those portfolio returns through dividends is especially key in a year when interest rates are expected to come down. The Federal Reserve has penciled in three rate cuts for…