Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [dividend-reinvestment]

67 questions
24
votes
5 answers

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 £177 after adjusting for inflation. However, the real…
seekingknowledge
  • 523
  • 1
  • 4
  • 8
17
votes
5 answers

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 than the shares of Case 2 by the amount of the…
PacoK
  • 272
  • 2
  • 8
16
votes
7 answers

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 investments? It sounds like investors would just…
Amazon Dies In Darkness
  • 1,168
  • 1
  • 10
  • 28
14
votes
1 answer

What does it mean if a company pays a quarterly dividend? How much would I get quarterly?

If I have a single share, lets say in Google which is currently worth 605.79. Lets say they pay out the dividends quarterly. What does that mean and how much would I get quarterly?
oshirowanen
  • 1,671
  • 5
  • 14
  • 25
12
votes
1 answer

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 like M1 Finance where they invest your money from…
snenson
  • 223
  • 1
  • 8
11
votes
4 answers

What to do with small dividends in brokerage account?

I just got paid some dividends from an ETF that I own. It is only $4, which is sitting as cash in my brokerage account. I'm aware that this is a very tiny amount of money in the grand scheme of things, so this question is more for my curiosity's…
Mike
  • 924
  • 1
  • 6
  • 22
11
votes
2 answers

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 reinvestment plans (DRIPs).
Franck Dernoncourt
  • 11,883
  • 13
  • 60
  • 147
10
votes
1 answer

How exactly do dividend reinvestment plans (DRIPs) work?

And where can I find out what companies offer them? Are there good resources for information on these plans?
wdd70
9
votes
5 answers

ETF S&P 500 with Reinvested Dividend

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 them automatically in stocks?
user246185
  • 247
  • 1
  • 2
  • 3
9
votes
2 answers

Why would a company issue a scrip dividend and how will this issue affect me?

Barclays in the UK have sent out a leaflet recently (online version) saying they are moving to a Scrip Dividend programme. The FAQ does its best to answer questions but still uses a lot of jargon and doesn't really answer all of the questions I…
Matthew Steeples
  • 297
  • 1
  • 2
  • 9
7
votes
3 answers

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 with it? I am mainly concerned about US based…
unj2
  • 171
  • 3
7
votes
2 answers

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 applying a dividend reinvestment plan. Is there a…
holland
  • 215
  • 2
  • 6
5
votes
1 answer

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 limitations on when they can be traded in a cash (non-margin)…
arcyqwerty
  • 1,293
  • 9
  • 20
5
votes
1 answer

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 you'd find with the Vanguard or Fidelity funds I'm…
InbetweenWeekends
  • 636
  • 3
  • 14
5
votes
3 answers

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 the other hand, they keep holding the cash, I will…
Tim Lovell-Smith
  • 217
  • 1
  • 5
1
2 3 4 5