Dividend investing for retirement Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend investing for retirement

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: gregor who wrote (6533)	11/19/2010 1:05:56 PM
From: chowder	Read Replies (2) of 34328

...( not meant to be critical just to stimulate some healthy discussion ) ............ That's how I take it and I was hoping others would chime in with their thoughts. Fidelity and TD Ameritrade do not charge for the shares you purchase when reinvesting dividends. They will even reinvest dividends in companies that don't offer DRIPs, like O for example. Same for CEF's and I believe ETF's. You also get the 5% discount on your reinvestment in a company like EPD. There are several companies out there that offer discounts from 1% to 5% if you set up a DRIP. Fido and TDA will pass that discount along to you. So, in this manner, you are increasing your positions without paying any commissions. You don't have to sign up for 100% reinvestment either. You can pick and choose which companies you wish to have the dividends reinvested. >>> You'd think that the stock prices will have recovered by those times so you will be buying after the stock prices have recovered from the predictable ex-dividend adjustment, or at higher prices. <<< This is true! ... I'm of the opinion though that I'm not always going to be able to purchase something at lower prices. I waited and waited for MCD to have a nice pull back and it wouldn't cooperate. Sometimes you have to pay up for quality and it's that quality that in essence creates value. There's a difference between cheap and inexpensive. >>> The reinvested shares will have to wait another 3 months to receive another dividend whereby if you reinvest in other stocks that will be paying dividends sooner the power of compounding will be accelerated and isn't the whole concept behind dividend paying stocks maximizing the power of compounding. <<< I'm still making cash contributions to my accounts. I use those contributions to buy other equities that will pay their dividend sooner. What I like best about the 100% reinvestment strategy, is that every holding is increasing their income stream month after month, for those who pay monthly, and quarter after quarter for those who pay quarterly. When I look at my statement the end of November, I won't know if the value of my accounts will be higher than they were in August, but I know my income stream will be!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next