2 ms·
$2.3k/year in reinvested dividends. $18.5k contribution + $10.5k employee match + $2.3k dividends. The dividends are like an additional 7% bump in contributio
by madengr 9y ago
$2.3k/year in reinvested dividends.
$18.5k contribution + $10.5k employee match + $2.3k dividends. The dividends are like an additional 7% bump in contribution.
- evanpw 9y agoI've never understood why people care so much about dividends. The stock price drops by the amount of the dividend on the ex-date, so a stock with dividends that are always reinvested is equivalent to a stock that never pays any dividends. (Unless you're holding it in a taxable account, in which case you have to pay taxes on the dividend and actually come out behind).
- fibbery 9y agoI like dividend stocks because it is automatically increasing my number of shares in a stock I like, and thereby 'bakes in' the gains. A stock that doesn't have dividends must be sold in order to reap profits, and as a novice investor I never know when to sell.