Why You SHOULDN'T Reinvest All Your Dividends

[@PaulaCarbonell-n7j]

The fact that determining the required portfolio size is irrelevant is, in my opinion, a significant advantage of dividend investing. We don't care about the value of the portfolio. The steady income it generates is important to us. Regardless of the state of the market, you can watch your income increase over time as you make more investments and take the decision to retire when it reaches a certain level.

[@wmwoods-l4f]

I believe that you shouldn't enter the industry blindly just because there are chances there. I'll suggest that you get professional assistance in order to comprehend the possible elements that contribute to your financial development.

[@j.ottinger]

That's a great analogy and I love the insight. Professionals could make a really big difference in investing, and I think everyone should have one. There are aspects of market trend that is difficult for the untrained eyes to see.

[@karitanaw]

Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?

[@j.ottinger]

My CFA ‘Annette Marie Holt , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@karitanaw]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@juliasalley]

When we hit $1 Million last 2 years it felt good but was kind of anti climatic. You still keep working, saving and making good choices in an unstable economic environment. However, despite market gains, our portfolio has seeing great decline. Seeking to improve it and maximize returns.

[@CharlesT.Foster]

I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.

[@KarenJ.Mancia]

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K

[@Andreavince-v]

impressive gains! how can I get your advlsor please, if you dont mind me asking? I could really use a help as of now

[@KarenJ.Mancia]

Stacy Lynn Staples is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@heatherj-o5j]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@jerrycampbell-ut9yf]

Some recommended equities that I recently purchased are now penny stocks. The first half of this year and the last third of 2023 appear to have seen more negative portfolios due to banks going out of business, skyrocketing inflation, and collapsing markets. How might the quick increase in interest rates benefit a value investor, or is it preferable to stay away from equities for the time being?

[@larrypaul-cw9nk]

Man, just "buy the dip." It will pay off in the long run. Although investors should be wary of the bull run, high interest rates typically result in lower stock prices. To reach your growth objectives and prevent mistakes, it is best to consult with a skilled adviser.

[@bobwright-90]

Until their own emotions burn them out, many people minimise the function of counsel. A few summers ago, following a protracted divorce, I needed a boost to keep my firm viable. I looked for licensed advisors and found someone with the highest qualifications. Despite inflation, she has helped me increase my reserve from $275k to $850k.

[@sabastinenoah]

Do you mind sharing your financial planner ?

[@bobwright-90]

Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@sabastinenoah]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@ericbergman7546]

I’ve always just left my dividends on autopilot to reinvest, but I’ve heard there’s a case for taking a more deliberate approach. It might depend on your financial goals

[@georgeearling905]

I was in the same boat recently and started to wonder if reinvesting dividends blindly is the best approach. Like you said, it’s the default option on most brokerage platforms, but not necessarily the only option

[@AliciaCrone]

There are times when it might be better to take dividends as cash instead and place them in something like a money market fund. You could keep the cash liquid and use it strategically when other opportunities arise.

[@rodgertim2881]

If you automatically reinvest dividends, you’re compounding your investment over time, which is great for long-term growth. You don’t need to think about it; the money just keeps working for you.

[@CarlAcevedo-sc3bl]

but there are situations where keeping dividends in cash makes sense, especially if you want more flexibility to diversify or buy into dips when the market is down.

[@christopherherbert2407]

That’s exactly what I was thinking. With the market being so volatile, maybe it would be smarter to accumulate those dividends and use them when I see a good opportunity. But on the other hand, I also don’t want cash sitting idle for too long

[@oneillbilder]

Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as the EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE

[@SladeCirrincione]

Personally, I would say have a mentor. Not sure where you will get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.

[@DallisonScramosin]

Some individuals minimize the importance of counsel until they make regrettable mistakes. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.

[@Pamela.George]

I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

[@DallisonScramosin]

I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Vivian Jean Wilhelm turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.

[@Pamela.George]

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

[@kendavies8351]

I would think that a major benefit of dividend investing is that calculating portfolio size needed is not relevant. We don't care about the value of the portfolio. We care about the sustainable income it pays. As you invest you can gradually see the income rise as you invest more and pull the retirement trigger when it's high enough regardless of the market sentiment.

[@karenwilliams9653]

Calculating the portfolio size needed is very relevant. - How else do you know how much to contribute?

[@Donalddavies-gc9rb]

By calculating how much additional income the contributions produce and estimating how that income rises. the capital value will fluctuate up and down over time so the amount of income new additions give you varies. so capital value being high with a market yielding 2% is no worse for retirement than the same portfolio at a different timepoints where the capital value is half and so the yield is 4%. so long as the yield is sustainable in real terms the capital value being half does not matter. its the same income stream at a different moment of low market sentiment vs high market sentiment.

[@SamanthaSanchez-sj5el]

When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech and Health (AMD) alongside coins, and gold.

[@SamanthaSanchez-sj5el]

I'm also working on an investment plan that includes AI looking into Nvidia, MSFT, Alphabet stocks among others with my CFA, . It's been a year and half of steady growth.

[@AnnaWoods-rm7cf]

I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisr, mind sharing info of this person guiding you please?

[@HectorWhitney]

My portfolio doesn’t just cater to dividend stocks. I hold $VFIAX (S&P 500 index fund) in my Roth IRA and $VTI (Total Stock Market ETF) in my taxable brokerage account. Two of my largest holdings. The individual dividend stock positions all complement the index holdings.

[@BellamyGriffin19]

Thats when you hire someone to manage your money. You need a (CFP) straight up! personally, I would invest in ETF's and also love investing in individual stocks.

[@PaulKatrina.]

Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.

[@ChristianKelv]

this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@PaulKatrina.]

My CFA ’Sophia Maurine Lanting’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@JohnSmith060]

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

[@DonaldMark-ne7se]

The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. $52k dividends received in 2022.

[@JacquelinePerrira]

I agree! That's why it is advisable that you have to invest while you still have a regular job or earning a regular income, and do it constantly. You still need to have something that will keep you going even if you're investing. Good financial planning and money allocation is the key.

[@Jamessmith-12]

The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.

[@kevinmarten]

please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?

[@Jamessmith-12]

When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.

[@Jamessmith-12]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@MesutMilleliri]

Money doesn’t grow on trees, but smart investments are like planting your own nurture them wisely

[@NoahNollens]

True! By making wise investments, you’re essentially growing your own wealth just nurture it wisely!

[@NoahNollens]

And! My adviser has helped me make wise investment decisions, effectively growing my wealth while managing risk.

[@OyunBabus]

I’d like to connect with a knowledgeable adviser to help me make wise investment decisions for wealth growth.1. I completely agree! I'd love to be introduced to a trustworthy adviser who can help me develop a personalized investment strategy.

[@NoahNollens]

My CFA *Julianne Iwersen-Niemann* a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..

[@OyunBabus]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@Martin-cb7gk]

Reinvesting all your dividends can lead to over-exposure to a particular stock or sector, neglecting diversification and potentially causing imbalance in your portfolio, whereas allocation dividend strategically can provide liquidity, reduce risk and align with changing financial goals.

[@SeanJohns-ze8ie]

That’s a great point. I’ve seen investors put all their eggs in one basket by reinvesting dividends without a strategy. This approach can lead to over-exposure to a particular stock or sector, neglecting diversification and potentially causing imbalance in their portfolio.

[@ThomasColt]

And it's not just about diversification. Reinvesting all dividends can also lead to over-concentration in a particular sector, making you vulnerable to market fluctuations.

[@TheDuke792]

Exactly. Strategic dividend allocation can help you maintain a balanced portfolio and reduce risk. What's your approach to dividend investing?

[@LilianScott-dy5nz]

I reinvest a portion of my dividends and allocate the rest to other asset classes or use it for living expenses. It's about finding that balance.

[@MikeHollow-rz5dl]

My CFA recommends rebalancing your portfolio quarterly to ensure alignment with changing financial goals. Do you guys rebalance regularly?

[@A_francis]

I’m pretty young and just started my portfolio with around $80K. Dividends drew me in right away! Slowly trying to create significant passive income and manage my Stock Portfolio. how do I invest to deal with markets ups & downs

[@RickWatson-xu6gw]

There are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience

[@RobbStonee]

I agree. Based on personal experience working with an investment advlsor, I currently have $985k in a well-diversified portfollo that has experienced exponential growth. It's not only about having money to invest in st0cks, but you also need to be knowledgeable.

[@benitabussell5053]

Do you mind sharing info on the adviser who assisted you?

[@RobbStonee]

Personally, I get guidance from *Marissa Lynn Babula* and most likely, the internet should have her basic info

[@fishkicks]

Too bad she's a vampire.

[@raztaz826]

I just like staring at my holdings and thinking about which thing to buy before clicking that buy button myself. Makes me feel smart

[@Madchris8828]

Haha I get what you mean. It does feel good 😂

[@Tertullian-q8n]

LMAO! We must have the same DNA...

[@PWIviefynn]

Curious about top investors' millionaire-making strategies, I'm eager to grow my $295,000 nest egg. Investing in stocks could provide attractive returns through capital appreciation and dividend yields. But timing is crucial - should I invest now or wait for improved market conditions?

[@Tonyham198]

I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks from other countries, you can lower the risk if one part of the market goes bad.

[@MyersRadfordKeith]

Several individuals minimize the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.

[@Jadechurch-ql3do]

Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.

[@MyersRadfordKeith]

Credits goes to "Lucinda Margaret Crist" one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.

[@yeslahykcim]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@johannesbruv1099]

To all these people telling you what to do: Don’t. Just do what you fell most comfortable with or what you would prefer. There’s better but find what works for you.

[@tonycrabtree3416]

This

[@shanetravel]

You know the way

[@Who_attackedFirst]

Ive come to a realization about dividends... i know this might sound like a dunce idea, but i thought one way to financial freedom was dividends. Sure, i still have some. But i recently learned that if you just invest in growth stocks over 10 - 30 years.... assuming you make 5 - 12% per year.... you could just take out the yield, without dipping into the "negative".... growth etf's are better, in this case, then dividends, for financial freedom... so simple yet i had to read about it, and why dont dividend centered investment youtubers dont talk about this method?

[@johannesbruv1099]

@@Who_attackedFirst idk if this is one but this sounded like one of those bot replies lol

[@thebes118]

I don't use an automatic reinvestment. I renvest my divideds on whichever stock has the biggest loss on that day.

[@InsightIQ_98]

You mindlessly do that?

[@Trader_65-OT]

I don't reinvest my dividends but I buy stock that is lagging behind. Basically I am constantly re-balancing the portfolio

[@MrsFrançoisCharlotte]

Thanks for sharing awesome tips! I'm 41 financially free and currently growing a solid retirement plan. It takes a positive attitude and consistency to learn new things and unlearn the old habits. It is important to get a mentor or coach to lead you all the way. It's great to start young too!

[@CristhianPalomo-r6j]

Hi, I'm 40 working on my retirement fund too. What do you think is the best target for retirement?

[@uwerathsack]

As a beginner investor, it's essential for you to have a mentor to keep you accountable.

[@KalleWahlgren]

Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the $401,000. We both still earning after our retirement fund has grown way more than it would have with just the $401,000

[@CristhianPalomo-r6j]

I don't really know which firm to work with; I feel they are all the same but it seems you've got it all worked out with the firm you work with so i surely wouldn't mind a recommendation.

[@KalleWahlgren]

I definitely share your sentiment about these firms. Finding financial advisors like Caroline Suzan Olson who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@robertgerber2533]

I can’t reinvest any money right now. I need it to pay bills

[@tonycrabtree3416]

@@robertgerber2533 Your money is working for you!

[@TheGoblin513]

I personally like to withdraw half of my dividends to spend. For example I bought a laptop with those funds last month.

[@thehamierocket2412]

What do you use and would u be able to help out?

[@OroborusFMA]

I always put my dividends into the closest ex-date, not the same stock that just paid out.

[@hopelessdecoy]

All my funds and ETFs pay monthly at around the same time.... But this is smart!!

[@wineweasel]

I have each month written down to tell me which stocks to buy that month with dividends because there ex div date is next month😂

[@Zitny135]

My Uncle Albert told me compound interest is the powerfullest of all!😊

[@thecollectiverisk]

I don’t have to worry about buying whole shares but my portfolio is only 12k or so, so I like piling up the dividends Into a lump sum and choosing which position to reinvest to…thanks for another video DB!

[@rubygreen1249]

How about just holding some in cash reserves for future opportunities?

[@Angrycapitalist]

Personally, I like to let the cash build up (my brokerage pays interest on cash like a savings acct) and deploy those funds when I see a buying opportunity.

[@RS-lw9cd]

@@robyee3325If the brokerage account is in a taxable account (vs a Roth IRA or Traditional IRA), as soon as a dividend is paid out, it has tax liability for that year. It does not matter if you pull it out of the brokerage account or not. So, even if you left it in the account, that gain/dividend would be taxable. The tax rate is dependent on a couple of things. Some dividends paid are taxed as ordinary income (such as REITs, BDCs, MLPs/LPs which are non-qualified dividends), while most are taxed as qualified dividends (which are taxed at a lower rate). You would need to determine what type of dividend is being paid => qualified or non-qualified dividends.

[@kaznika6584]

​@@robyee3325No, but you will pay income tax on any interest earned.

[@Sanloong7]

​@robyee3325 u get taxed on interest and dividend in brokerage account regardless of u take out to spend or not

[@Sanloong7]

@robyee3325 yes, roth IRA tax free except MLPs.

[@Tertullian-q8n]

smart move.

[@delbomb3131]

The "more work" bit you talked about is exactly why i enjoy having drip turned of. Getting to decide where to invest it is a satisfying experience. If i wanted something hands off I'd just dump most of my money in voo and forget about it.

[@Billclint-i8f]

I enjoy investing in closed-end funds that offer monthly dividends. The key strategy is to hold these investments long-term while reinvesting the monthly dividends and purchasing additional shares whenever possible. This approach is convenient because closed-end funds are traded on the stock market like regular stocks. Following this strategy could build a portfolio that generates between $50,000 to $70,000 in dividend income.

[@franklyn-z1k]

I agree because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.

[@CheriFanizza]

That's a great analogy and I love the insight. Professionals could make a really big difference in investing, and I think everyone should have one. There are aspects of market trend that is difficult for the untrained eyes to see.

[@phill-s3s]

Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?

[@CheriFanizza]

My CFA 'Grace Adams Cook' , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@phill-s3s]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@kortyEdna825]

My strategy combines ETFs for dividends and growth, including JEPI, DIVO, QYLD, SCHD, and JEPQ. Last year, my dividends totaled $102K. but not sure how to mitigate risk thus far for this year.

[@foden700]

investors like you should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.

[@KaurKhangura]

I agree with you. As an early investor in NVDA, AVGO, ANSS, and LRCX, my financial advisor's advice was incredibly helpful. Over the past 7 years, she has helped me find stocks that did 10x multiple times. With her help, I've grown my portfolio to over a million dollars.

[@PatrickFitzgerald-cx6io]

Well it seems like a lot of your interest is riding on your source, I could really get well accustomed to your viewpoint, get me involved.

[@KaurKhangura]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.

[@PatrickFitzgerald-cx6io]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@FaithJay-d9n]

I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?

[@wineweasel]

Aim for 7% 30% is too risky you'll lose it all

[@Tertullian-q8n]

@@wineweasel Bull, I'm investing in Yieldmax high dividend payouts. I'm up to $6,000/month dividends with an 100k portfolio.

[@AbbieHampson-oh9se]

If you’re into presales, Cortux is a must-have. Early birds get the biggest worms!

[@LarsHaendler]

GOF drip discount ... I did not know that 😮

[@floataboat]

Fractional shares is why I don’t invest with vanguard because they don’t allow it

[@tonycrabtree3416]

I own GOF, OXLC, and ECC. WOOOOOO!

[@robertcabral1366]

Thanks for another well thought out, and informative video 👍😎. You show us how to handle dividends in different types of stocks . This helps in being able to do our due diligence for the various stocks and funds. Thanks for all your hard work and help. 👍😎

[@Steverino70]

For an income investor, the practice of taking the dividends in cash instead of automatic reinvesting, should be a key practice. It is for me. Excellent video.

[@VictorSanchezVS13]

I'm dripping. But I think once my portfolio hits 50k, I'll be earning about $200 a month. Then I can really buy a share per month of whatever I want. I'm not sure.

[@blktauna]

An interesting take but as I'm a set and forget, at the moment I drip.

[@deyemeracing8795]

DRIP is a stupid way to invest, for sure, but if you're still accumulating, you DO want to reinvest dividends and interest. But you should do it based on a composite value of capital gain and dividend output. Pool all the new money together and put it where it will be the most effective based on that composite value. It's pretty easy to set up a spreadsheet to let it do the math for you. Download a CSV or similar of your portfolio, merge it with the spreadsheet, recalculate, and decide where last month's dividends go this month.

[@richkuban2027]

I have asset allocation set up among about 20 positions. I don’t DRIP. I prefer to buy whole shares. I keep approx $1000 cash in each account so I can round up shares. I usually place orders before the dividend pay date. Orders are generally aimed at positions in a reasonable price range, and may not be in the position paying the dividend. Excess cash is in money market funds, waiting for dips in the market. I enjoy the time it takes.

[@KreeH2023]

I do both, drip and collect for target buying. You have to do what makes sense for you.

[@FreakyLynx]

Maybe when I reach the dividend payment threshold where I feel comfortable with the income I may stop the drop and put it in my general stock buying fund but right now I’m sticking to reinvesting with my own cash added if there’s something new I want to buy.

[@logicalmisery3737]

How does automatic reinvesting work if the dividend you get isn't enough to buy whole shares? Doesn't it just sit there until next dividend distribution until you have enough?

[@Barbara-k3x9j]

I’ve been making a lot of losses trying to make profit trading. I thought trading on a demo account is just like trading the real market…Can anyone help me out or at least advise me on what to do?

[@Martensalberto]

I will advice you should stop trading on your own if you keep losing.

[@Martensalberto]

If you can, then get a professional to trade for you I think that way your assets are more secure.

[@Martensalberto]

I’d recommend Viola Patterson , her profit is great even when there’s a dip

[@Martensalberto]

you dont need to be shocked haha because i'm also a huge beneficiary of her

[@LilyR-s9y]

I've seen a lot of positive reviews about this professional, she must be exceptional for people to talk about her goodness

[@GreyFox474]

Where I live, automatic DRIP is not a thing at all. Standard here is that you get a cash account as part of your brokerage account and all dividends get deposited there. However, this would still be my preferred way If DRIP was an option, since I want to build up a couple of positions with a savings plan and then use their dividends to build up other positions.

[@winb1505]

I use all my dividends to buy shares of SCHD and DGRO.

[@T4G95]

The list of things you need to consider. Does the reinvestment plan offer fractional shares. If not do not apply to be involved as any money that can’t be used to buy another whole share will sit their wasted earning no interest until there is enough to buy one… that could be a long time. Better off keeping that in your hands where you can put it in a savings account or add a bit extra money to buy a full share. Another thing to consider is what are the tax implications for all of your dividends? Are you earning many thousands of dollars a year in dividends? Do you have the spare money come tax time to pay for the taxes incurred by these dividends or should you be keeping some aside before reinvesting them to cover the tax owed. Does the dividend reinvestment plan offer any substantial discount price for the new shares? Obviously you get the discount from brokerage fees but if you can get locked into paying a graph peak price when they decide the drip share cost only for the stock price to slide before you actually receive the dividend… then you could have purchased them yourself cheaper than the drip paid them to you.

[@anotherdude9456]

I thought most brokerage apps allowed fractional share purchases at this point. A big reason i took so long to start investing was that I couldn't afford full shares of most stocks. yes i could affird shares of ARCC but i wasnt aware of them before. Im mostly referring to Larger holdings like microsoft

[@darrellmcpraytor1212]

I do both..drip on half and I use the other dividend cash to add on other stocks when they are at a lower price.

[@Knuckles-2024]

When I opened JEPI, I loved getting my dividend instead of more JEPI. However now that I own SCHG, I want it back into more SCHG asap!

[@drescherjm]

I never used to use the DRIP feature but I have it enabled on about 1/2 of my 30+ dividend paying stocks. The other half I let the cash position grow between the dividends and my monthly transfers and then 3 to 5 times a year I purchase some new security.

[@Jbig1430]

Also if you use margin to buy shares drip will make the purchase as a cash purchase without using margin

[@KimberlyO.Kitchens]

I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.

[@pauline-o2q]

I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.

[@KarenJ.Mancia]

The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively in ROI, summing up to 7-figures as of today.

[@CharlesT.Foster]

This is definitely considerable! think you could suggest any professional/advlsors i can get on the phone with? i'm in dire need of proper portfollo allocation

[@KarenJ.Mancia]

I've been working with ‘’Stacy Lynn Staples” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, Look her up.

[@Saviourtina-c4i]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@gtcam723]

This just gave me a great idea (great to me at least) - route the DRIP into a leveraged ETF

[@danstevens64]

Can you elaborate?

[@gtcam723]

@@danstevens64 it may need to be done manually, but instead of the dividends going back into the yielding asset, use them to buy a leveraged ETF such as TQQQ

[@georgechapogas1054]

Auto reinvesting is buying at a high share price. reinvest on your own, time it with dips.

[@YouGotOptions2]

Isnt that called dollar cost averaging?

[@BelleDividends]

My European broker doesn't have an automatic DRIP plan. But I let the dividends pay along with my monthly investment. Also: I'm still early starting out so the dividends are still a minority of my investment part.

[@rcdyer]

I like to cycle. One quarter I'll take out a percentage of my portfolio then the next switch to another batch and so on. Have about 12 different dividend paying ETF's and about a third so far are in a ROTH so that helps with taxes.

[@DJbladeDJblade-r4v]

WurmpInu is taking center stage with that Times Square ad! The future is looking bright!

[@Narsuitus]

I do not use the DRIP reinvestment method. I prefer to accumulate my dividends in a money market account. Every quarter, I use the money to buy new equities, take a required minimum distribution, or add to my current holdings.

[@jamesp8459]

Very informative perspective, thanks!

[@ventcurtisburkett532]

I have an allocation goal for different classes of income investments (REIT, Covered Calls, Preferred Stocks, Utilities, Index, and BDC). I stopped reinvesting in REITs lately because their value has increased so much that I am overweight in them. This is a good problem to have, LOL, but I don't want any class of investments to be more than 20% of my portfolio.

[@kenjordan5750]

I don't DRIP. I accumulate divis and buy another divi payer, when the market corrects. A slow way to diversify. I still have BMY from 2010, PRU from 2020, both yielding 9%+ now.

[@peoriaos6627]

Great video. I never DRIP, but I can understand why people would and may drip for short times in th3 future. I use my my dividends for income and rebuilding for inflation. I want to get the most bang for my bucks so hold my reinvestment/inflation money for future bargains and don't spend it until said bargains are achieved. Thanks for all you do Dividend Bull. I wouldn't have been able to retire early if it wasn't for you.

[@dubsdolby9437]

Reinvest at the right times. Wait for the year lows and the higher yields.

[@tylerplueddemann7140]

Thoughts on using Merrill Edge? This is what I use

[@rd9102]

IMO you should allow all dividends to pool as cash so that you can buy the right shares at the right time and not just reinvest everything.

[@NewFrontier63]

I invest in dividend stocks solely for income. I’m in my sixties and am not looking for slow growth. I need money to live well now.

[@Malaphisis]

Been using all my dividends to pay off my car within a year, 2 months left....................not investing sucks!

[@chevyboa8950]

🔥🔥🔥

[@jlolment]

let them sit, waiting around for a 2% down day, and in the meantime it pays margin

[@simonyoel]

Why you SHOULDN'T reinvest all of your dividends: At some point in March/April uncle Sam will be asking you for his portion of the cake, and if you already reinvested all of your dividends you will be in a very Sh**y situation to say the least. A lesson I learned the hard way.

[@genxtech5584]

If you're making THAT much off dividends then you really don't have much to complain about mate. Pay your due and enjoy all our country has to offer us as a result. I hope to have enough invested one day to care about the taxes.

[@Jim1971a]

Wouldn’t it be better to just keep the increasing share value in the share instead of paying out the dividend, reducing the share price, and causing a taxable event?

[@rainbowtrippin3069]

Hey Dividend Bull, Could you do a video on ARLP?

[@MikeLagos-rg2rj]

Consolidating my portfolio to focus on BTC and Cortux, maybe a touch of LTC.

[@Dougsellshouston]

When young and your account is a baby reinvest it all, Schwab buys fractional shares… as your account grows and you have a ton of money no issue with taking some of the money

[@brgel]

When you get dividends and a company is still significantly overvalued, you sell the shares too…

[@RandomUploads-gr9oe]

Moved all my funds into BTC and Cortux. This presale is too good to pass up.

[@techshark77]

Robinhood fixes this easily and automatically

[@SpeakerBuilder]

I go into my account ever month and reinvest manually, looking for the best deals and thereby getting the best return. Of course, I am retired and have the time.

[@tricepsbrachii]

There is no point in reinvesting the dividends. Better to have stocks without dividends in that case.

[@tortoisehead30]

Someday MAIN will be fairly valued. It’s always on my watch list just in case.

[@chevyboa8950]

Same here

[@sologeorgio]

its better to buy shares and not re invest . i buy shares and use the dividens for paying for bills and buy more and more shares instead .

[@GrahamReeds]

All the platforms I use allow trading of fractional shares and all platforms I use also pay interest on unused funds, the lowest of which is 4.9%. My personal preference is to wait until I have $500 and spend it all in one block.

[@derekbionelli1049]

JAAA is a good place to sit them too.

[@GaryTR35]

Platforms like M1 can reallocate dividends automatically

[@gaziboman8494]

I like to buy gold and silver with my dividends

[@marcelhoekstra6219]

reinvesting dividend in the next stock that goes ex dividend

[@emanueljennings1016]

DIVIDEND BULL - WHICH IS BETTER ADDING SMALL FREQUENT PAYMENTS OR - IF ONE HAS THE MONEY - ONE HUGE PAYMENT - LETTING BOTH DRIP & COMPOUND - WHICH IS BEST ??

[@methos1999]

I go back and forth but at the moment I DRIP.

[@DJFIERROMIX]

So nice to see Ms Claudia Ann Brandon talked about here, her good works are speaking already, and like wild fire she's spreading.

[@DJFIERROMIX]

I remember giving her my first savings $20000 and she opened a brokerage account for me it turned out to be the best thing that ever happened to me.

[@juliocs5483]

Never heard of GOF…research it is 😂

[@user-gy4up6cd5o]

I don't understand why dividend investors would consider reinvest all their dividends. Why having dividends at the first place, why not just go for growth. You will have less shares, but not less value.

[@vhateverlie]

In my experience dividend investors are big fans of value traps where the company has zero growth and just the dividend.

[@MikeVictory]

don't drip...reinvest in stocks that give you the greatest return

[@tonycrabtree3416]

😂😂😂 NO!

[@HiggoDavid-ln6po]

Who else thinks Cortux will outperform XRP soon?

[@RB-je3yj]

😵😬😵‍💫🫨

[@SergeantPsycho]

I prefer the "dividend wheel" strategy, just to help balance things out.

[@kimberlyjones4534]

Thank you for the content!! All we need is the right advice on how to invest in crypto and we will be set for life, I’ve made huge figures from trading regardless of the market conditions😊

[@Truck--kun]

If it's in my roths I let them drip, if in my taxable I take cash to manually reinvest on drops unless they have a drip discount. I'd also argue on your point that if you need income from CEFs to take distributions as cash, I'd say still drip it then sell the discounted shares for more money and not take less from straight cash distribution

[@davesites]

👍

[@2fan]

🥳🥳🥳

[@LuceWilliam-ir9mg]

It seems certain stocks are undervalued, flying under the radar despite their potential. You can't help but wonder when the market will recognize their true worth. How can I invest $600K wisely to ensure our future security?

[@StruggleEndure]

Always buy on ex dividend date

[@Tertullian-q8n]

Very bad advice there. Many of my covered call options stay green after the payout date.

[@Rune-Eriksen225]

I'm new to investing, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have.

[@blinddog4288]

5.5% cash is probably the best dividend right now. Stock prices are going to fall. Some of these stocks are going to fail and you can later buy on the lower while still collecting a safe and fair return.