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Is reinvesting dividends a mistake for stocks in retirement?

Posted on 3/23/23 at 10:52 am
Posted by thelawnwranglers
Member since Sep 2007
42047 posts
Posted on 3/23/23 at 10:52 am
I have reinvest on but thought I saw somewhere price after dividend artificially high bc of auto reinvest?


Also my OCD hate having .342 of a share lol
Posted by Motownsix
Boise
Member since Oct 2022
3143 posts
Posted on 3/23/23 at 11:03 am to
I auto reinvest in some accounts but not all. I do like the for the stocks that are more high dollar and it helps build up share counts. For some stocks that I want to keep the share count at the current amount I prefer the cash to use to buy other stocks.
Posted by Wraytex
San Antonio - Gonzales
Member since Jun 2020
3499 posts
Posted on 3/23/23 at 11:08 am to
Depends, Dripping CLM and ARR due to cheap share price currently, and Taking ET dist and PBR/A divy and reinvesting or bag watering as the situation presents itself.
Posted by TDsngumbo
Member since Oct 2011
49230 posts
Posted on 3/23/23 at 11:15 am to
I auto reinvest in my 401k and IRA's. I don't need the money now so why wouldn't I take free shares now while I'm still 25 years away from retirement?
Posted by bayoubengals88
LA
Member since Sep 2007
23512 posts
Posted on 3/23/23 at 11:16 am to
quote:

I have reinvest on but thought I saw somewhere price after dividend artificially high bc of auto reinvest?

When dividends are paid out, the price of the stock automatically dips as capital is distributed, or leaves the company.

When dividends are reinvested into the company the stock price rises to reflect that capital being replinished/reinvested back into the company.

This has no impact on your retirement.
I thought you were asking, "Should I just cash the dividends and live on the payments?" And the answer would depend on your situation.
Posted by SulphursFinest
Lafayette
Member since Jan 2015
11363 posts
Posted on 3/23/23 at 11:28 am to
I like dividends for when you are closer to retirement or in retirement because you aren’t selling off any stock. My version of dividend is SCHD and JEPI, etc.
Posted by thelawnwranglers
Member since Sep 2007
42047 posts
Posted on 3/23/23 at 11:56 am to
I don't mind reinvesting

Retirement account and would like core positions to build

More a question of timing of auto reinvest
Posted by GhostOfFreedom
Member since Jan 2021
13101 posts
Posted on 3/23/23 at 4:33 pm to
You present an argument that I hadn't thought of. I will look more into it.

That said, I have my reinvest turned on for GameStop direct registered via ComputerShare. I think it will be very entertaining, if all 200,000 GameStop holder accounts at CS have this option turned on, and GameStop gives us a dividend.

Currently, we have a third of all GameStop shares directly registered. We have 60% of the Free Float. As the shares available to loan and short dry up, I want to see what happens.
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