Deleted
Joined: Apr 29, 2024 21:31:56 GMT -5
Posts: 0
|
Post by Deleted on Mar 5, 2012 11:26:27 GMT -5
Another Dividend Question!
DH and I are modeling how best to take our dividends from large dividend paying stocks in retirement. We will need them as income but the question is does it make more sense to keep reinvesting throughout the year and selling stock at the end of the year or take the dividends as cash. We will have a year's worth of income banked as an EF.
Pros, Cons, ?
|
|
bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
|
Post by bimetalaupt on Mar 5, 2012 17:42:38 GMT -5
Another Dividend Question! DH and I are modeling how best to take our dividends from large dividend paying stocks in retirement. We will need them as income but the question is does it make more sense to keep reinvesting throughout the year and selling stock at the end of the year or take the dividends as cash. We will have a year's worth of income banked as an EF. Pros, Cons, ? bonnap, Two point I want to add WXYZ,s responce.. First If you save up the dividends you can buy when the market is lower, most dividend paying stocks will sell at a premium on the day dividends are paid. This appears to be very obvious for dividend paying stock that pay on the 1st of each month.. It is quite nice to have a little cash to buy when everyone else is selling.. Rebalancing |
|
Aman A.K.A. Ahamburger
Senior Associate
Viva La Revolucion!
Joined: Dec 20, 2010 22:22:04 GMT -5
Posts: 12,758
|
Post by Aman A.K.A. Ahamburger on Mar 6, 2012 1:50:56 GMT -5
Wise words from a wise man!  |
|
Driftr
Senior Member
Joined: Mar 10, 2011 13:08:15 GMT -5
Posts: 3,478
|
Post by Driftr on Mar 6, 2012 14:02:06 GMT -5
Pro - Peace of mind
Con - not maximizing results
When we retire we will be choosing the pro without a moment's regret.
|
|
Deleted
Joined: Apr 29, 2024 21:31:56 GMT -5
Posts: 0
|
Post by Deleted on Mar 6, 2012 15:50:00 GMT -5
Thanks guys!
|
|
gobermitcheese
Established Member
Joined: Feb 21, 2011 12:44:55 GMT -5
Posts: 484
|
Post by gobermitcheese on Mar 12, 2012 11:17:17 GMT -5
I don't see the advantage of selling once a year. Won't you need the money throughout the year? I would just transfer a regular "paycheck" to yourself from the brokerage account roughly equal to your average monthly dividend payments.
|
|
bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
|
Post by bimetalaupt on Mar 16, 2012 15:10:15 GMT -5
I don't see the advantage of selling once a year. Won't you need the money throughout the year? I would just transfer a regular "paycheck" to yourself from the brokerage account roughly equal to your average monthly dividend payments. Cheese, Sell high!!! buy average??? I think this is part of the 50/50 rebalancing system with bonds and stocks... on average you get a larger increase in total but a lower beta..ie higher Sharpe index vs total return??? Yes; on average you sell stocks one time a year but the timing will be determinated by the market not the days of the month. I did my MBA with a nine stock system and one bond.. I think in retrospect 50 stocks would have been more of an average return but nine was a huge amount of numbers to work with. I think D.I. has a lot more to talk about the number of stocks. Just a thought, BiMetalAuPt |
|
