03-20-2021, 07:48 AM
(This post was last modified: 03-20-2021, 07:55 AM by ken-do-nim.)
Great article Eric. Once trades became commission free; directed reinvestment became a great option. However, what I've been finding tends to happen is the "discipline factor". Let's say I get a few dividends, and my cash is up to $150. I will probably choose a stock that's $120 and a stock that's $30 and go right back to near zero in the account. But some of my stocks that are $300, $400 a share are much harder to reinvest into this way. It takes discipline to wait for the dividends to accumulate enough to buy a share of the higher priced stocks.
Therefore, what I've been thinking of is a synthesis of the two strategies. The pure income producers like T, NLY, ORC push their dividends into the pot, whereas the high priced dividend growth stocks like AVGO ($474) and SHW ($706!) keep reinvestment on.
Therefore, what I've been thinking of is a synthesis of the two strategies. The pure income producers like T, NLY, ORC push their dividends into the pot, whereas the high priced dividend growth stocks like AVGO ($474) and SHW ($706!) keep reinvestment on.