Don't forget this with your DRP investments | Dividend Investing

[@niklaus009]

as a new share investor, that’s a great pro tip, thank you Sangee!

[@scott-wright]

I did this a few years back! I still have the additional shares! With DRP still turned on! I get one share a year haha. I don’t want to pay the brokerage on the sale for such a low amount

[@arigutman]

I am ambivalent with DRIP set up all the time.. When the market reaches its highs, I think DRIP should be turned off and the money should go into a settlement fund before being rerouted into the cheapest/best value investment... DRIP is great during volatile times, but should be deployed cautiously during other periods...

[@jamesivory6414]

Great tip. I feel that another good word of advice is getting your dividends back in cash and not shares in some instances. Ie I hold 183 share in Vas. Their dividends are going to be 1.99 per share which equals 364.17 which means at the current price of vas I’ll only get three shares of vas but I would’ve get the remaining 77.49. But getting my dividends in cash allows me to get it to put aside to buy more VAS when the market dips again to buy it at a good price. Just my advice I would like to share.

[@joeee60]

You’re timing the market.

[@SickOneBro]

Sanjee, I wonder if I'm not interested in dividends just yet because It'll just go into taxes, can I build a growth portfolio only and then move the whole lot into a dividends portfolio once I retire when dividends payout are valuable to me? What are the downsides?

[@tonytan5945]

I don’t do DRP anymore. There’s really no advantage unless you are only interested in small portfolio share quantities as the DRP saves you the brokerage. It’s really not worth the added hassle of tax reporting years down the track due to the more complex calculations your accountant has to sort through. Getting a cash dividend is so much cleaner and you get to decide where to reinvest yourself. If you were the company and was aware 90% if your shareholders were DRP, you’d have no qualms upping the dividend that year as you knew the money would just flow back into your coffers anyway. A bit cynical in thinking but I’m sure it’s something management keeps in mind when deciding on dividend payouts.

[@Sasha-16june]

Great info

[@melissagreenwood9856]

If your DRP pays out less than the value of a share (e.g. the shares cost $20, but your dividend is only $5), what happens to the $5, does the company hold it until you eventually have $20 to buy a share?

[@passdasalt]

Good to know, but knowing me, I'll probably forget this tip by the time I ever sell.

[@Daysoff428]

Thanks for the tip Sanjee.

[@SanjeeSen]

My pleasure!

[@llGaapll]

Can you sell $100 worth of share or is there a minimum and you have to sell?

[@SanjeeSen]

You can sell $100 worth. I think the only minimum is for buying and that is $500

[@llGaapll]

@@SanjeeSen Thanks for that because I did the same with Woolworths stocks. Bloody market link 😂

[@onkarmahajan8171]

Hi Sanjee, can you please make a video on EV ETF?

[@SanjeeSen]

Hi Onkar, I'll add it to the list - I've actually been out of the loop on the latest ETFs. Interesting to see some new ETFs come out in such a short space.

[@johnathanjoestar7129]

What’s your net worth on your portfolio bro?

[@SanjeeSen]

Very low Johnathan. That's why I make videos intermittently on ETFs and not about hanging out on a beach in Tahiti ;) Thanks for watching

[@peelpa]

Ahhh. Right. Yes

[@abelassefa6480]

Haha I have done same mistakes before

[@liamlindell4176]

Dad did this in the nineties with NAB. Has let it grow till now hahahha