DRIP, aka dividend reinvestment plans, offer some options and decisions for the dividend investor...
There are enough pros and cons for both DRIP and cash dividends that I do not think there is a right or wrong choice, its personal preference.
For the Model Portfolio, once there is $250 of cash made a month I will probably turn DRIP off and take my dividends in the form of cash. That is the current size of each of my stock orders. This way I can roll my dividends back into my portfolio monthly but take advantage of the weakest of them. At this point in time where I am getting $10 a month it would take 2 years before I reinvest the first dividend and that is too much compound interest that I am losing.
Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.
There are enough pros and cons for both DRIP and cash dividends that I do not think there is a right or wrong choice, its personal preference.
For the Model Portfolio, once there is $250 of cash made a month I will probably turn DRIP off and take my dividends in the form of cash. That is the current size of each of my stock orders. This way I can roll my dividends back into my portfolio monthly but take advantage of the weakest of them. At this point in time where I am getting $10 a month it would take 2 years before I reinvest the first dividend and that is too much compound interest that I am losing.
Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
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