Saul - been reading through the back posts … great board.
Something I haven’t seen yet is the answer to the question of what to do with dividends. I know that investing in the kind of high growth companies that are being talked about here means that we’re not going for income yield … dividends are going to be pretty sparse.
Having said that - when they do come around, what do you do with them? Do you automatically re-invest in the same company? Do you take them in cash and use them to build funds for changing positions around? Do you cash them out - which, since you’re living off of your portfolio, wouldn’t be unexpected? If you do cash them out, what would be your strategy if you were not retired and living off of the income?
Thanks!
Matthew
Something I haven’t seen yet is the answer to the question of what to do with dividends. I know that investing in the kind of high growth companies that are being talked about here means that we’re not going for income yield … dividends are going to be pretty sparse. Having said that - when they do come around, what do you do with them? Do you automatically re-invest in the same company? Do you take them in cash and use them to build funds for changing positions around? Do you cash them out - which, since you’re living off of your portfolio, wouldn’t be unexpected? If you do cash them out, what would be your strategy if you were not retired and living off of the income?
Hi Matthew,
As you realized, dividends aren’t a big part of my investing. I have, on occasion, set dividends for some companies on automatic reinvesting (so Schwab will automatically put them into fractional shares of stock at no cost). When I just checked my Schwab account I don’t see that I currently have any stocks on that plan. In general, I treat the dividends as just fungible dollars. They just get mixed in with whatever cash I have in the account. If I’m wiring some money to my checking account to live on I don’t, in any way, separate out the dollars that came from dividends.
I hope that helps. It’s just the way I do it and it seems the simplest to me.
Best,
Saul
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As you realized, dividends aren’t a big part of my investing. I have, on occasion, set dividends for some companies on automatic reinvesting (so Schwab will automatically put them into fractional shares of stock at no cost). When I just checked my Schwab account I don’t see that I currently have any stocks on that plan. In general, I treat the dividends as just fungible dollars. They just get mixed in with whatever cash I have in the account. If I’m wiring some money to my checking account to live on I don’t, in any way, separate out the dollars that came from dividends.
Not a surprise. Thanks…