tag:blogger.com,1999:blog-6587699706949333863.post9013015110682436131..comments2024-03-27T23:39:33.499-05:00Comments on Passive Income Pursuit: Reinvest or Pool?Passive Income Pursuithttp://www.blogger.com/profile/13947101854482544346noreply@blogger.comBlogger20125tag:blogger.com,1999:blog-6587699706949333863.post-1073446172048094512014-05-16T19:01:28.701-05:002014-05-16T19:01:28.701-05:00Thanks for the insight on the topic. It is somethi...Thanks for the insight on the topic. It is something my friend and I have been discussing recently. What has prevented me from turning off my automic reinvestment features is my projected annual dividend income. I currently am projected to earn $1,380 in dividends during the fiscal period. This amount doesn't quite reach my self mandated minimum purchase amount; so as of now I will maintain the automatic investing feature. However, one day when I reach a level of $1k of dividends per quarter pooling cash for a new undervalued investment. <br /><br />Best of luck with your new strategy. Keep us updated, I am very interested to see how well this strategy works for you. <br /><br />-Bert, One of the Dividend DiplomatsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-58814160066647806142014-04-27T22:41:09.213-05:002014-04-27T22:41:09.213-05:00ILG,
I need to go through all of my holdings to ...ILG, <br /><br />I need to go through all of my holdings to see which ones offer a discount and how much it is. If it's over 1% I think it'd be well worth the reinvestment even if it's a bit more of a hassle if I have to sell shares.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-17543348101910676242014-04-27T22:39:46.367-05:002014-04-27T22:39:46.367-05:00Evan,
I still like automatic reinvestment becaus...Evan, <br /><br />I still like automatic reinvestment because whether I find companies at compelling prices or not I'm getting some capital invested each and every month. The main goal is to consistently increase my dividend payments and the automatic reinvestment accomplishes that very easily and without building up a large cash pile too much right now. I'm going to give it one or two quarters to see how I feel.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-49390446636770363912014-04-23T19:11:02.132-05:002014-04-23T19:11:02.132-05:00I recently turned off automatic reinvestment for m...I recently turned off automatic reinvestment for most of my positions. There are a few I still do though. OHI is one because you get a 1% discount on reinvested money, now that may not matter based on valuation, but its free money. <br /><br />InvestLikeGrampahttps://www.blogger.com/profile/12342607548407246637noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-11142935640073865512014-04-23T10:07:27.823-05:002014-04-23T10:07:27.823-05:00Like a lot of the other readers, I agree with your...Like a lot of the other readers, I agree with your particular call, however, that is not what I do. I try to make one purchase a month in the $600 to $1000 range whether I have the money or not in the account (small margin line currently at $1,600 or so). Knowing myself I believe that if I let it accrue in cash it would just be used to pay off the margin thus not actually reinvesting. Evan @ My journey to Millionshttp://www.myjourneytomillions.comnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-79701545355223300062014-04-20T06:15:09.031-05:002014-04-20T06:15:09.031-05:00SFZ,
I'm reinvesting everything in my Roth a...SFZ, <br /><br />I'm reinvesting everything in my Roth as well because of the same reason. <br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-27180352730704629742014-04-20T05:48:29.515-05:002014-04-20T05:48:29.515-05:00DoD,
I didn't realize that some of the disco...DoD, <br /><br />I didn't realize that some of the discounts were passed along. That's definitely an incentive to have the DRIP turned on.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-15795878182162051782014-04-20T05:47:02.142-05:002014-04-20T05:47:02.142-05:00Anon,
That's an interesting read from Chowde...Anon, <br /><br />That's an interesting read from Chowder and thanks for sharing it. I see the pros and cons for both. It's a big pro to automatically reinvest and continually increase your income whether you find value in the markets or not. And I didn't even realize that some of the discounts were passed along. That's definitely nice so now I need to go and check all of my holdings to see which offer discounts. For now I think I'll keep most of them turned off and see how I feel about it. Although with some of the highest quality companies I might be turning it back on. Definitely something to think about.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-40482092306863666252014-04-20T05:42:21.258-05:002014-04-20T05:42:21.258-05:00New Life,
There's advantages and disadvantag...New Life, <br /><br />There's advantages and disadvantages to both but I think right now it's best to collect and selectively reinvest with new capital. I'm still thinking of turning it back on for a few select positions. <br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-7323476964682349272014-04-19T20:28:38.497-05:002014-04-19T20:28:38.497-05:00I collect all the dividends in cash in my taxable ...I collect all the dividends in cash in my taxable accounts and combine them with new money each month to make additional purchases. With my Roth I DRIP everything since I'm only making a small handful of trades each year and I'd rather to put those dividends back to work for me right away.<br /><br />Have a great weekend,<br />SFZStarting From Zerohttps://www.blogger.com/profile/01984222557562819975noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-87076262892233404312014-04-19T17:14:18.190-05:002014-04-19T17:14:18.190-05:00I pool unless there it's at least a 3% discoun...I pool unless there it's at least a 3% discount attached to the DRIP. No magic to that %, just a number which gives me enough incentive to DRIP. Dining on Dividendshttps://www.blogger.com/profile/08580645102807919181noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-75930848126775072542014-04-18T18:34:01.374-05:002014-04-18T18:34:01.374-05:00Interesting read there. I have LOTS of respect fo...Interesting read there. I have LOTS of respect for Chowder and agree with 99.999% of what he says, but his logic is flawed with this one.<br /><br />#1) He doesn't add reinvested dividends to his cost basis. Each reinvested dividend increases your cost basis. Period. His MMP example is skewed beyond belief. As the price went up, each reinvested dividend made his CAGR lower, not higher...<br /><br />#2) I don't have to use pooled dividends to only purchase the most undervalued companies. I don't know where he got that idea... I'm personally willing to pay up for quality and I don't have to auto reinvest to get more shares of companies like KO or PEP. You know, companies that always sell at a premium.<br /><br />#3) It's way way easier to keep my portfolio balanced taking dividends as cash. Auto reinvesting makes it harder!<br /><br />That said, there is nothing wrong with DRIPing and I have nothing against it. Promise. I use it for a couple positions to take advantage of reinvestment discounts.Compounding Incomehttps://www.blogger.com/profile/04207986983526689578noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-49985712730938378272014-04-18T16:29:51.133-05:002014-04-18T16:29:51.133-05:00I drip all holdings. Chowder explains why to do so...I drip all holdings. Chowder explains why to do so much better than I could...<br /><br />http://seekingalpha.com/instablog/728729-chowder/1627581-dividend-reinvestment-yes-or-noAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-89874591163042449102014-04-18T10:48:14.821-05:002014-04-18T10:48:14.821-05:00I think it's much better to collect dividends ...I think it's much better to collect dividends and buy shares selectively. With this way I can select my investments, I (hope) do the right decision when I purchase new shares. I used to add dividends to my monthly contributions. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-49032197975695333232014-04-18T09:49:25.217-05:002014-04-18T09:49:25.217-05:00Bryan,
I'm more inclined to want to be more ...Bryan, <br /><br />I'm more inclined to want to be more strategic with my capital. Especially since that $1k per quarter is almost enough for an additional buy each quarter. Over time the value will prove itself, although seeing my positions increase every quarter was pretty good. <br /><br />I'm still kind of building cash for a rental. I'd still love to own one if I can find the right situation but I think it's just going to be too difficult to really pursue one on the open market. There's no way I'm going to make that big of a financial commitment without walking through the property beforehand and most of the ones that I've found that are listed usually get under contract while I'm at work. The opportunity for me to be a bit more nimble and aggressive in my search isn't there due to work. I think going through a turnkey company is my only real option. My plan when I'm off work next month is to meet with as many as possible and hopefully see a few of the properties they have and the scopes of work that they did. I'm sitting on around $30k cash across all of my accounts and these dividends will help to build that up a bit more.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-40364500071348042112014-04-18T09:42:32.800-05:002014-04-18T09:42:32.800-05:00WE,
Mainly I was reinvesting the dividends other...WE, <br /><br />Mainly I was reinvesting the dividends other than a few that seemed a bit riskier or the dividend "culture" hadn't really been established yet within the BoD and management. <br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-80334082019012533372014-04-18T09:40:49.159-05:002014-04-18T09:40:49.159-05:00R2R,
It makes the most sense to collect them in ...R2R, <br /><br />It makes the most sense to collect them in cash while in the accumulation phase in most situations. The only way I don't see it being the right move is if the companies you own are all undervalued, like most companies a few years back, or you have very little cash to contribute or it's not on a regular basis. If you're making additional investments every month, it makes sense to get as much value as possible. Although I did like to see my position sizes grow through the reinvestment. <br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-40018633067546094392014-04-18T09:22:27.861-05:002014-04-18T09:22:27.861-05:00My path is the same as yours. I began collection c...My path is the same as yours. I began collection cash on a few of the stocks I bought when I first started investing that weren't as financially sound (NLY for example). Then later I switched over to accumulating cash to buy new positions. I think the cash route is a good option for me because I own far too few positions right now - I need to approximately double or triple my positions to get a good diversification. Once I have 30-40 stocks in my portfolio, I may reconsider automatic reinvestment.Wallet Engineershttps://www.blogger.com/profile/04116295538595677882noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-64473345928535752762014-04-18T08:49:02.075-05:002014-04-18T08:49:02.075-05:00I auto reinvested until about 18 months ago. I st...I auto reinvested until about 18 months ago. I stopped, figuring at that point in the market cycle my core holdings were pretty fairly valued. Now I let my cash build and make tactical investments. Plus, weren't you letting your cash build for a rental house?<br />-BryanIncome Surferhttp://www.incomesurfer.comnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-25087862725773977752014-04-18T08:31:46.538-05:002014-04-18T08:31:46.538-05:00I collect the cash. The only security where I auto...I collect the cash. The only security where I automatically reinvest is in my DRIP program for BNS. I am trying to increase my cash position in the last couple of months - hoping for a better valuation to invest.<br />Roadmap2Retirehttps://www.blogger.com/profile/14379818667071736766noreply@blogger.com