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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (6525)	11/18/2010 1:40:18 PM
From: Steve Felix	Respond to of 34328

I'm planning to move that direction by January the first. I currently take all the divs. in cash. Probably ten or eleven stocks to start. My higher yielders are there for current income to invest in dividend growers, not to grow their positions. No more O though. :)

To: chowder who wrote (6525)	11/18/2010 5:20:38 PM
From: JimisJim	Respond to of 34328

I also reinvest all dividends into the stock producing them... however, since I have minimal/insignificant money flowing into that account/IRA, from time to time, I sell off portions of select positions to open or beef up new or existing positions according to my overall sector allocation goals. It is not ideal, but it is the only way I can create 30 positions out of 10 (which is what I've done this year). Jim

To: chowder who wrote (6525)	11/18/2010 6:04:57 PM
From: Tom C	Respond to of 34328

Every holding I have is signed up for 100% reinvestment. I do the same in my taxable and IRA accounts with one recent exception. A few weeks ago I moved a mutual fund from another IRA, closing it out, into my dividend investment IRA. This triples the total value of the IRA account. I turned off re-investment in the mutual fund. This fund once has a 3% yield which I've always re-invested but now it is tracking about 2% for last year and this year. My original intention when I moved the fund over was to provide some cash quarterly in the IRA. Cash I could re-invest in my current holdings or use to purchase new stocks. Now I'm thinking I'll hold until I see the december distribution and make a decision about selling a significant portion or holding for the next year.

To: chowder who wrote (6525)	11/19/2010 10:18:11 AM
From: gregor	Read Replies (1) \| Respond to of 34328

>>I think I'm going to stir up some trouble! ... :o)<< The first thing that comes to mind is that by reinvesting in this manner you will save trading commissions ( or will you, i.e. don't know if my broker, which is Fidelity charges for these purchases ). Two other things come to mind. First. Stocks usually fall after ex-dividend dates, however the actual cash will hit your account 2 or 3 weeks after the ex-dividend date, so the actual purchases will take place at those times. 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. Second. 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. Just some thoughts...( not meant to be critical just to stimulate some healthy discussion )