Questions tagged [dividend-reinvestment]
The dividend-reinvestment tag has no usage guidance.
67 questions
3
votes
1
answer
389
views
How do ETFs process dividends?
Presumably at least some of the stock shares held by an Exchange Traded mutual Fund produce dividends.
Do those dividends just get pocketed by (and taxed upon) the fund managers, as their income to ...
- 51.4k
3
votes
1
answer
1k
views
Does eToro's Dividend Growth smart portfolio really pay dividends?
Four months ago I started an investment in Dividend Growth on eToro.
I once read that dividends are not automatically reinvested but actually go straight into one's balance. However, I haven't seen ...
- 133
1
vote
2
answers
259
views
Dividend for "accumulating" ETFs?
I'm looking at BlackRock ETFs and for those that "Use of income" is set to "distributing" I can look into the Factsheet and find the dividend. For example: https://www.blackrock....
- 298
3
votes
1
answer
1k
views
How to effectively reinvest dividend with IBKR
I’m currently investing in numerous index ETFs such as QQQ, VOO, DÍA etc. using IBKR.
I have chosen automatic dividend reinvestment in IBKR settings for all my ETFs
However non of the dividends were ...
- 43
2
votes
1
answer
2k
views
Are there any accumulating ETFs domiciled in the US? If none or few, why? [duplicate]
US domiciled ETFs always distribute dividends and make you pay 30% tax on the dividends if you are a foreign investor.
I'm looking for ETFs domiciled in the US that do not distribute gains but I ...
- 131
0
votes
1
answer
293
views
Finding or calculating rate of return with reinvestment?
How can I find the rate of return from an investment, including both capital gains when I sell it and dividends it paid while I held it?
Ideally, the answer should include the case where some or all ...
- 11
4
votes
2
answers
802
views
How is the average return rate of the S&P 500 annual return calculated?
I am trying to understand where the famous average return rate of about 10% of the S&P 500 comes from. In most conversations, the usual starting date is on 1965. Its averaging closing value at ...
- 143
3
votes
2
answers
116
views
Price on dividend reinvestment
I started doing dividend re-investment and as my spouse's brokerage account was at a different brokerage, so I noticed the different price for same ETF e.g. QQQ.
One of the brokerage gave reinvestment ...
- 1,026
16
votes
7
answers
4k
views
If an investor does not need an income stream, do dividend stocks have advantages over non-dividend stocks?
My limited understanding is that a stock's share price typically goes down on its ex-dividend date by the amount of the dividend. If that's true, why are dividend equities generally considered good ...
- 1,146
1
vote
0
answers
58
views
Dividend impact on accumulating inverse ETFs
This is a pretty straightforward clarification question. For inverse ETFs tracking an index which are tagged as "accumulating", what this actually means is that we are not tracking the ...
- 123
12
votes
1
answer
1k
views
How can stockbrokers be so cheap in the U.S.?
How do stockbrokers in the U.S. manage to be so cheap?
In Germany, I know a few brokers but at most of them, the cost of an order is over 5€ (approx. 6$) every time. In the states, you have brokers ...
- 223
11
votes
2
answers
2k
views
Why don't all dividend-yielding companies offer dividend reinvestment plans (DRIPs)?
My uneducated guess is that dividend reinvestments seem to be a win-win situation between companies and shareholders. As a result, I wonder why some dividend-yielding companies do not offer dividend ...
- 11.5k
1
vote
3
answers
1k
views
If an ETF directly reinvests its money back in to itself, does the "compound interest" approach to shares still apply?
The idea of investing in ETFs was given to me as follows, I'll call this the "compound interest approach":
Historically speaking, unless you can time the market very well or have a very ...
- 607
1
vote
1
answer
266
views
If an investor wants to reinvest dividends, aren't stock dividends better than cash dividends?
When a company pays a cash dividend, the shareholders may need to pay income tax on that dividend. If a shareholder always wishes to reinvest the dividends, cash dividends have a few disadvantages:
...
- 17.2k
17
votes
5
answers
5k
views
If your plan is to reinvest dividends, wouldn't you rather the company not pay dividends altogether?
Case 1: XYZ pays a dividend. We reinvest all dividends back into XYZ
Case 2: XYZ does not pay a dividend
In Case 1, you end up with more shares of XYZ than Case 2, but the shares will be worth less ...
- 272
1
vote
0
answers
27
views
Tracking inconsistency in FX-hedged accumulating ETF
I am looking at historical data for the iShares S&P 500 GBP Hedged UCITS ETF (Acc) Exchange Traded Fund (ETF), with Epic ID IGUS. The objective of the ETF is to track the performance of the S&...
- 123
4
votes
2
answers
337
views
Does dividend reinvesting influence the price?
A dividend paying asset pays a dividend on a specific date. When brokerages auto-reinvest these proceeds (DRIP), won't that influence the price (assuming that it's a market order)? In other words, ...
- 1,256
3
votes
2
answers
606
views
If a bond index fund's income is re-invested, how can it be a fixed income asset?
Looking at a bond index fund Key Investor Information, I have found this:
Income from the Fund will be reinvested and reflected in the price of shares in the Fund
I don't fully understand it. As ...
- 1,283
1
vote
2
answers
183
views
How do ETF commissions work?
Let's suppose that I live in the UK, and that I have £10000 invested in Vanguard's VUSA. This ETF has an ongoing charge of 0.07%. This, added to the 0.15% account fee, it's a 0.22% total. That means ...
- 1,283
0
votes
1
answer
67
views
Is there a UK investment brokerage allowing purchase of fractional shares / dividend reinvestment with low fees? [closed]
I am a UK resident looking for a stocks and shares brokerage for long-term value-investing.
I am currently working with limited money for investing so am saving until I can buy complete stocks using ...
1
vote
3
answers
5k
views
How much money do I need to generate $1500 per month in dividends for the rest of my life? [duplicate]
I am 29 years old. I do freelance work and I can save around $500/Month from that.
In my country, $1500/month is more than enough to cover all living/health/entertainment expenses for me and possibly ...
- 657
1
vote
1
answer
83
views
Shares bought in a dividend reinvestment plan, where do they come from?
I just received a notice that my dividend was used to purchase and additional 5 shares in the the ETF.
Since there are only a limited amount of trade-able units, where did these additional 5 come ...
- 233
0
votes
2
answers
252
views
How inflation affects returns and dividends
How inflation is linked to returns AND dividends? We know that adj returns are (1+return)/(1+inflation) -1
But how do we account for dividends?
Suppose:
10% annual return
3% inflation
4% dividend ...
- 21
2
votes
1
answer
3k
views
Does reinvesting dividends after selling for a loss cause a wash sale? [duplicate]
I sold some fund shares with high turnover on my personal investment account with the intent of buying something similar later on my IRA account. However, after I sold (and within 30 days), I ...
- 313
1
vote
1
answer
87
views
Dividend from ESOP to Cash - India
I'm Indian and working for a US organisation in India. I have been investing in the Employee Stock Purchase Plan (ESPP) for a while now. During the initial investment period, I had not opted for re-...
- 31
2
votes
2
answers
568
views
How to chart what a mutual fund or ETF will return if dividends are reinvested?
When looking at financial charts like bigcharts.com, the chart shows closing price (or OHLC) for each day. This shows growth (or decline) of the equity if dividends are not reinvested.
But what if ...
- 1,146
0
votes
2
answers
674
views
Do SPY prices include dividends?
I'd like to calculate the return of SPY over a range of time. For example:
5/1/18: 264.98
9/14/18: 290.88
264.98 - 290.88 = 25.9
25.9/264.98= 0.0977 = 9.77%
Does the 9.77% return include SPY ...
- 1,408
1
vote
3
answers
246
views
Keeping track of "out of pocket" cost basis
Dilemma
I have some criticism about the cost basis reported on brokerage websites. It isn't your out-of-pocket cost basis. It accounts for reinvested dividends. As a result, the gain/loss number ...
- 672
7
votes
3
answers
325
views
What do mutual funds do with the dividends that the securities that they contain give out?
For example, Vanguard Dividend funds have a lot of stocks that give out dividends. Are there any regulatory requirements for Vanguard to distribute the fund? Can they decide to do whatever they want ...
- 171
2
votes
1
answer
544
views
DRIP Vs. Cash Dividend in a taxable account - Which one is beneficial from the tax perspective?
I believe dividends are considered as an income and if you reinvest using DRIP it won't be income but capital gain later when you sell the stock?
What are some advantages and disadvantages of doing ...
- 185
1
vote
1
answer
93
views
Indian Mutual Funds
I am new to Stock Markets. I have interests to invest my savings on Mutual Funds. When I looking for Higher Return Mutual Fund securities, I have seen some information there. For Example, I am ...
- 131
1
vote
2
answers
1k
views
Why is there less buzz around IEP (Carl Icahn) than BRK.B (Warren Buffett)?
IEP is 95% owned by Carl Icahn. It most certainly passes the Skin in the Game principle Nassim Taleb likes to talk about.
I happen to own a couple of shares in it because of the man's incredible ...
- 128
0
votes
1
answer
41
views
Is high liquidity required to fulfill DRIPs?
With DRIPs you get equity instead of cash, but where is this equity coming from? If it's from the existing market then what happens in low liquidity situations?
- 528
2
votes
0
answers
225
views
What does "No Sweep" Mean in Citibank Context
I am in the process of opening Traditional IRA account with Citibank (currently have checking and saving account at Citibank)
Purpose is to purchase ETF for long-term.
Form has section to determine ...
- 295
5
votes
1
answer
132
views
Are DRIPs subject to a settlement period?
Are DRIPs subject to a settlement period (e.g. T+2)?
Does the answer depend on whether the dividend reinvestment accounts for complete shares vs only fractional shares?
Are there any time ...
- 1,293
7
votes
2
answers
2k
views
How to automatically reinvest in non-dividend paying funds
I've read Einsteins quote stating "The most powerful force in the universe is compound interest." However, everywhere I read this is basically only possible with dividend paying stocks and then ...
- 215
24
votes
5
answers
6k
views
Dividends - Why the push to reinvest?
I recently received an email from my brokerage (UK based) stating:
"Research from Barclays shows that without dividends, £100 invested in the UK stock market since 1899 would have grown into just £...
- 523
4
votes
4
answers
3k
views
Dividend vs Growth Stocks for young investors
I am a young investor (24 yo) with a stable income and would like to know which long-term investment plan would be more appropriate for people around my age and why:
Growth Stocks or Dividend Growth ...
- 143
-1
votes
1
answer
277
views
Meaning of reinvestment
Is it correct that stocks and mutual funds can distribute dividends and capital gains automatically without account holders' intervention, and then reinvest the distributed to buy new shares?
From ...
- 5,893
5
votes
1
answer
1k
views
Missing 401(k) dividends
I have a 401(k) with a gigantic, global, US-based company. The funds available to me include a variety of non-tickered funds — meaning that there's no symbol I can independently research — such as ...
2
votes
4
answers
3k
views
What is the difference between a scrip dividend and a stock split?
Definitions of both scrip dividend and share split gives the same meaning. What is the difference between a scrip dividend and share splits?
9
votes
5
answers
23k
views
ETF S&P 500 with Reinvested Dividend [closed]
All ETFs tracking the S&P 500 Index I know (SPY, VOO, IVV) pay dividends several times per years. Is there any ETF that tracks the S&P 500 Index but instead of paying dividends they reinvest ...
- 247
2
votes
1
answer
176
views
Taxes on qualifying dividends when reinvesting
I put all my investment money in a managed account with Chase Private. The account is set up to reinvest all dividends, capital gain distributions and interests my stocks/mutual funds/treasury funds ...
- 187
1
vote
1
answer
2k
views
Are automatic Dividend Reinvestments (DRIPs) subject to Redemption Fees?
It's the end of 2015, and most mutual funds are paying out their annual dividends, which I have enrolled in DRIPs (dividend reinvestment programs). Since a "DRIP" transaction is similar to purchasing ...
- 926
2
votes
1
answer
136
views
Why do dividend reinvestments not match my calculator?
I've seen this occur numerous times in my IRAs. In the transaction section of my Fidelity IRA, it shows a line item Reinvestment XXX with a dollar amount. Clicking the details will display the ...
1
vote
1
answer
193
views
Selling non-dividend for dividend stocks
H all,
Few years ago , I received from my previous employer several hundred RSU, all managed by ETrade. since then all have already got Vested. I never sold neither bought any, in other words, I ...
- 129
2
votes
1
answer
229
views
Can a dividend reinvestment plan (DRIP) and share purchase plan (SPP) be used with a TFSA?
Can I put Sun Life (SLF) shares into a dividend reinvestment plan (DRIP) and share purchase plan (SPP) plan, and then put into a TFSA investment account for a family member, 5 to 10 year term?
- 21
5
votes
3
answers
321
views
Wouldn't it be better if reinvested dividends were simply treatable as capital gains for tax purposes?
Suppose I own 100 shares in XYZ corp purchased for 25c in year 2000.
If XYZ corp pays me 5c in dividends in year 2001, I will owe tax on the 5c dividends, hopefully as qualified dividends(?).
If on ...
- 217
2
votes
2
answers
194
views
Index ETF or Index mutual fund - standard brokerage account
If I plan to hold an asset for 10 years, the asset is offered as a mutual fund and an etf, with the same 0.25% fee, and quarterly dividends of 100.00, from a tax and reinvestment standpoint, which ...
- 240
1
vote
1
answer
83
views
Is there a way to avoid short-term capital gains taxes on bond funds?
It appears that most bond ETFs pay out monthly distributions from interest earnings. Is there a way to directly reinvesting the earnings on the fund without triggering a taxable event? Are there any ...
user19035