Questions tagged [dividend-reinvestment]

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3
votes
2answers
109 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 ...
15
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7answers
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 ...
0
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0answers
28 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 ...
12
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1answer
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 ...
11
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2answers
1k 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 ...
1
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3answers
279 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 ...
1
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1answer
200 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
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5answers
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 ...
4
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2answers
278 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, ...
3
votes
2answers
526 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
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2answers
175 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 ...
0
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1answer
64 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
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3answers
2k 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 ...
1
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1answer
75 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 ...
0
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2answers
233 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 ...
2
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1answer
1k 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 ...
1
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1answer
78 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-...
2
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2answers
437 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 ...
0
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2answers
559 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
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3answers
219 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 ...
7
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3answers
312 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 ...
2
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1answer
476 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 ...
1
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1answer
85 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 ...
1
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2answers
721 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 ...
0
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1answer
40 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?
2
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0answers
137 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 ...
5
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1answer
93 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 ...
7
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2answers
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 ...
24
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5answers
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 £...
4
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4answers
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 ...
-1
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1answer
267 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
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1answer
567 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
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4answers
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?
8
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5answers
21k 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 ...
2
votes
1answer
125 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 ...
1
vote
1answer
1k 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 ...
2
votes
1answer
117 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
1answer
184 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 ...
2
votes
1answer
217 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?
4
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3answers
284 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 ...
2
votes
2answers
184 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 ...
1
vote
1answer
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 ...
0
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2answers
128 views

Different avenues of tangible returns from index funds and bond funds

I am a beginner investor and I've been out of school at this point having saved enough to seriously look at where I am investing my money. I have decided to start off with a portfolio that is ...
2
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5answers
2k views

What's the difference between a high yield dividend stock vs a growth stock?

I'm new to investing and still learning my way. What's the difference between a stock that stays relatively stable during good and bad times and returns a high dividend vs a stock that is supposed to ...
-2
votes
1answer
649 views

Which of these unrealized profit calculations is correct? And, why other calculations are wrong?

Which of these unrealized profit calculations is correct? And, why other calculations are wrong? @ $10 per unit, $1000 - Subscription (100 units) $0500 - Cash dividend (50 units) $0500 - Reinvested ...
1
vote
1answer
223 views

Taxation on DRIPs in Canada

I am starting to invest in DRIPs, as I believe they would be the best investment for me at my current point in life. I am reading some other questions here, and people are stating that the income, ...
4
votes
1answer
6k views

Chart total return of mutual fund vs. stock with dividends reinvested? [closed]

Using common charting software, how can I best compare total returns of a mutual fund vs. total return of a stock, with dividend reinvestment (DRIP) in each case? Frequently the easy to get charts ...
2
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2answers
3k views

Wash sale rule with dividend reinvestment

Let's say I buy some stock. Two weeks later it pays a dividend which is reinvested in fractional shares of the stock. The next day I sell all shares at a loss. Would this be considered a wash sale? ...
0
votes
1answer
273 views

Is it possible that for shares to be reinvested in a stock you already sold?

I just recently set my taxable investment account from reinvest dividends to deposit in cash. However, there seems to be a delay (I assume related to one of the various dates associated with dividends)...
2
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1answer
829 views

Why do many British companies offer a scrip dividend option in lieu of cash?

Some stocks like GlaxoSmithKline, HSBC, Tesco, Unilever all offer dividends every quarterly/yearly, with the option of scrip dividend (opting to use the dividend to purchase shares). Why would ...