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Can you give an example of a broker that keeps the dividends for themselves? I know outside of the US there is a concept of distributing vs accumulating funds
by pedrosorio 6y ago
Can you give an example of a broker that keeps the dividends for themselves?
I know outside of the US there is a concept of distributing vs accumulating funds (and in both cases you get the dividends, just in a different form):
https://www.bogleheads.org/wiki/Comparison_of_accumulating_ETFs_and_distributing_ETFs https://www.bogleheads.org/wiki/Comparison_of_accumulating_E...
- blowfish721 6y agoYou probably right, I could have been so hung up on cash payouts that I missed that. As for example I haven’t seen any broker in Sweden that does cash payouts but like you said the money is probably going back to the investors just not as cash.
- rebuilder 6y agoFor tax reasons, reinvesting the dividends is preferable as (here at least) that doesn't trigger a tax event like a dividend paid outside the fund would.
- deanmoriarty 6y agoI wish that was the case in the US!