On managing dividends. I've gone in a circle with regards to dividends. Initially I was reinvesting all dividends on the thinking that a dividend does not increase or decrease the value of a stock or ETF, so it makes most sense to reinvest to not change the value of the ETF.
Then I accepted the idea that I should take out dividends as cash and let AIM manage the extra cash. It's also easier not to have to add reinvested securities to the AIM program. It made mechanics of managing the AIM spreadsheet easier.
Now I'm going back to reinvesting dividends on a few of my core ETFs, those that I want to increase anyway. The reason is that the market just does not have sufficient dips to trigger enough buys in my core ETFs to make use of all the cash, and cash is deadwood to performance of the portfolio at this time. This in spite of the fact that I've put incremental increases in the PC of my core ETFs. I'm going to see how this change works out to decide how to manage the rest of my core with regards to dividends.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.