12-10-2013, 05:03 PM
TomK you made no mention of the commission to invest the 125 in another stock, while there is no cost to re-invest in the same stock. To get the max growth the dividend re-investment should allow for fraction of share purchase.
If I took the $125 cash dividend and invested in another stock, than those funds would add to the new investment.
I mainly monitor the income each stock generates and my yield on the total investment in each stock (I do not compare my return or loss to any index or market). Therefore the $125 would increase my investment in the other stock while my investment would remain the same for the initial stock.
The $125 dividend received would still be recorded as income from the first stock. Next qtr both stocks would generate an income.
(12-04-2013, 02:05 PM)TomK Wrote: I guess one real question is how do you track the return on stock XYZ when you take the dividends as cash and/or invest them elsewhere.
If I took the $125 cash dividend and invested in another stock, than those funds would add to the new investment.
I mainly monitor the income each stock generates and my yield on the total investment in each stock (I do not compare my return or loss to any index or market). Therefore the $125 would increase my investment in the other stock while my investment would remain the same for the initial stock.
The $125 dividend received would still be recorded as income from the first stock. Next qtr both stocks would generate an income.