+- Dividend Growth Forum (http://DividendGrowthForum.com)
+-- Forum: Dividend Growth Investing (http://DividendGrowthForum.com/forumdisplay.php?fid=15)
+--- Forum: Dividend Growth Investing (http://DividendGrowthForum.com/forumdisplay.php?fid=33)
+--- Thread: Should I delve in DG stocks? (/showthread.php?tid=408)
RE: Should I delve in DG stocks? - Star - 02-27-2014
I'll opt for reinvesting proceeds myself. I like the idea of deciding where the capital is allocated myself.
Apart from the emergency funds, would it be a prudent move to invest 75-90% of all my income into safe DG companies?
RE: Should I delve in DG stocks? - EricL - 02-27-2014
(02-27-2014, 09:34 AM)Star Wrote: I'll opt for reinvesting proceeds myself. I like the idea of deciding where the capital is allocated myself.
Apart from the emergency funds, would it be a prudent move to invest 75-90% of all my income into safe DG companies?
Did you give up on your 40% to mortgage savings already?
RE: Should I delve in DG stocks? - cannew - 02-27-2014
(02-26-2014, 08:45 AM)Star Wrote: So what do you guys do with regards to reinvesting dividends. There is a trade off, situation 1) reinvest dividend automatically, buy at any price + compounding advantage. Situation 2) Collect all dividends over a period of time (quarterly? yearly?) & invest them elsewhere or same stock when the prices are low, here we lose compound time.
This is my current dilemma, my platform takes 1% of dividends which are automatically reinvested by them. On the other hand I am in a tax wrapper so no dividends are taxed at source.
This is a personal choice and probably you'd get many opinions.
- If you need the money or want a portion to cover expenses, than don't re-invest.
- If the dividends don't amount to a lot of money than I suggest re-investing, especially if you can purchase partial shares
- If your dividends are larger amounts, some may wish to accumulate the $$ and buy what they want and when you wish (even though you must pay a fee to buy).
- I prefer to re-invest all my dividends (even though I may not be buying at the best time). But I find the compounding and accumulation of additional shares a benefit and works for me. As I record the dividends received, it's nice to see the quarterly increase. It's even nicer when the dividend is raised.