04-13-2015, 10:27 AM
(04-13-2015, 10:13 AM)Lewys120 Wrote: What I'm going to do is to take the dividends as cash and invest elsewhere, anyone else do this with some stocks?
This seems like a good decision. I mostly reinvest right back into the dividend payer, even if I feel like the company is slightly overvalued and would not buy with "new" money.
But sometimes I will take the dividends as cash and just add that to the "new" money pile slated for fresh investments. I'll do this if the company gets seriously overvalued or if the investment thesis becomes so broken that I don't want to acquire any more of it, but not quite broken enough to sell. This happened to me with INTC last year. I sold off a portion of my stake, and stopped reinvesting the dividends while the company was on probation.