When prices are low I prefer to buy more, and
receiving dividends in cash allows me to determine when to buy or sell.
Many years from now, I look forward to «turning off» the DRIP before I'm retired and
receiving dividends in cash.
When you have your dividends reinvested you're treated the same as if
you received the dividend in cash and then used that money to buy additional shares.
The term «proceeds and avails», in reference to policies of life insurance, includes death benefits, accelerated payments of the death benefit or accelerated payment of a special surrender value, cash surrender and loan values, premiums waived, and dividends, whether used in reduction of premiums or in whatever manner used or applied, except where the debtor has, after issuance of the policy, elected to
receive the dividends in cash.
If you choose to have dividends reinvested, the tax law treats you the same as if
you received the dividend in cash and then used the cash to buy more shares.
When you reinvest a dividend, you're treated as if
you received the dividend in cash and immediately used that money to buy more shares.
Whole life insurance policy owners can elect to
receive dividends in cash or choose other options such as paid - up additional life insurance.
Not exact matches
Under the terms of the agreement, Dr Pepper Snapple shareholders will
receive $ 103.75 per share
in a
cash dividend and retain 13 % of the combined company.
On a $ 100,000 portfolio, 5 % or $ 5,000
in strategic
cash should be plenty, especially if you trade less often than you
receive dividends, which should be the case.
Under the terms of the merger agreement, Dell stockholders will
receive $ 13.75
in cash for each share of Dell common stock they hold, plus payment of a special
cash dividend of $ 0.13 per share to stockholders of record as of the close of business on Oct. 28, 2013, for total consideration of $ 13.88 per share
in cash.
While most DRIP investors reinvest their
dividends, many DRIP investors like to
receive at least some of their
dividends in cash and thus may find this information particularly helpful.
Kraft shareholders will
receive 49 percent of the stock
in the combined entity, plus a
cash dividend of $ 16.50 a share, the companies said
in a statement Wednesday.
Investors
in the parent company Brookfield Asset Management (myself included) were informed on May 16, 2016 that they would be
receiving 1 unit of BBP for every 50 shares of BAM.A — for investors with odd lots,
cash dividends would be
received in lieu of fractional ownership.
The fund's UIT structure is shared by a few other long - lived ETFs (like SPY), with the most notable effects being a slight
cash drag since stock
dividends received in between the ETF's distributions can't be reinvested as is typically the case.
In preference to the holders of our common stock, each share of preferred stock is entitled to
receive, on a pari passu basis,
cash dividends at the rate of 6 % of the original issue price per annum on each outstanding share of preferred stock.
It doesn't matter whether the
dividends are
received in cash or left with the insurance company to prepay premiums or to accumulate.
In turn, the buyer receives a share of ownership, and the company gets cash to grow his business or to pay off debt, Equity securities generally pay off steady dividends, to the buyer, but do fluctuate in their market value depending on the ups and downs of the market and the economic situatio
In turn, the buyer
receives a share of ownership, and the company gets
cash to grow his business or to pay off debt, Equity securities generally pay off steady
dividends, to the buyer, but do fluctuate
in their market value depending on the ups and downs of the market and the economic situatio
in their market value depending on the ups and downs of the market and the economic situation.
As a shareholder, you could
receive earnings from the companies
in which you are invested
in the form of a
cash dividend.
If your Johnson & Johnson stock paid you a $ 120
dividend and their shares were currently priced at $ 50, you would
receive two new Johnson & Johnson shares as well as $ 20
in cash.
Earlier, the companies said Kraft shareholders will
receive stock
in the combined company and a special
cash dividend of $ 16.50 per share, financed by a $ 10 billion investment from private equity firm 3G Capital and Berkshire Hathaway.
Dividends can be
received in the form of
cash payments or they can be invested to purchase additional shares of the stock.
Stock and
cash transaction, with Kraft shareholders to
receive a special
cash dividend of $ 16.50 per share upon closing and stock
in the combined company representing a 49 % stake
in the new company.
Dr Pepper Snapple Shareholders to
Receive $ 103.75 Per Share
in a Special
Cash Dividend and Retain 13 % of the Combined Company
A couple more nutsy - boltsy issues: If you
receive any
dividends, interest or other distributions paid to you
in cash (as opposed to reinvested
in your portfolio as additional shares), those payments would be considered part of your withdrawal.
As you invest
in stocks, the
cash dividends you
receive are automatically reinvested
in more of the company's stocks.
I'm not aware of any Canadian mechanism which would allow a
dividend to be considered paid / taxable without: (1) you
receiving cash; (2) you
receiving additional shares [which particularly
in Canada is just a foolish way to accelerate tax, essentially, and basically never happens]; or (3) your funds
received by a broker being automatically reinvested on your behalf [this is really the same as «you
receiving cash», but you never see the money before it's used to rebuy new shares].
When a non distributing ETF
receives cash from the
dividends of the companies, it takes that
cash and reinvest it
in the whole basket of stocks that compose the index, not just
in the companies that provided the
dividends.
DRIPs allow you to
receive ETF distributions — whether stock
dividends, bond interest, or return of capital —
in the form of new shares rather than
cash.
For example, if you plan to withdraw $ 40,000
in a given year and you will
receive $ 15,000
in dividends or capital gains distributions
in cash, then you would draw only $ 25,000 from your nest egg, so that the combination of
dividends, distributions and the withdrawal gets you to your $ 40,000 target.
By staying
in Coca - Cola's common stock, a high - quality
dividend growth company, Berkshire - Hathaway
receives a 38 %
cash return every year on its original investment just
in dividends!
Dividend Re-Investment Plan (DRIP): A program offered by some corporations (particularly investment companies)
in which shareholders may opt to use their
dividends to purchase additional shares
in the corporation
in lieu of
receiving cash payments.
When you borrow against your policy (use your
cash value as collateral), you are still
receiving dividends on your full
cash value, AND you get the use of the
cash on loan to invest
in something else.
The
dividends and capital gains shown on Form 1099 - DIV are considered taxable even if you reinvested your distributions
in additional fund shares instead of
receiving them
in cash.
Although DRIP investors collect their
dividends in the form of new shares, they still get a T3 slip every year and must pay tax as though they
received them
in cash.
(
In fact, that's exactly the approach we recommend in «A better way to generate cash flow,» below) «In the same way that there's no difference between receiving a dividend and selling a few shares to generate cash flow, there is no difference between having your mutual fund automatically pay a distribution and you selling a few units,» says Hallet
In fact, that's exactly the approach we recommend
in «A better way to generate cash flow,» below) «In the same way that there's no difference between receiving a dividend and selling a few shares to generate cash flow, there is no difference between having your mutual fund automatically pay a distribution and you selling a few units,» says Hallet
in «A better way to generate
cash flow,» below) «
In the same way that there's no difference between receiving a dividend and selling a few shares to generate cash flow, there is no difference between having your mutual fund automatically pay a distribution and you selling a few units,» says Hallet
In the same way that there's no difference between
receiving a
dividend and selling a few shares to generate
cash flow, there is no difference between having your mutual fund automatically pay a distribution and you selling a few units,» says Hallett.
The one important difference is that HXT investors do not
receive cash dividends —
in fact, the ETF pays no distributions at all.
Dividend reinvestment plans, or DRIPs, are plans some companies offer to allow shareholders to
receive additional shares
in lieu of
cash dividends.
I wrote a 3 part series on DRIPs which you can read if you're not familiar with them, but the basic idea is that the
dividends you would have
received (
in cash) get reinvested automatically by purchasing more shares.
The investor does not
receive quarterly
dividends directly as
cash; instead, the investor's
dividends are directly reinvested
in the underlying equity.
This is basically when a company offers its shareholder the chance to
receive dividends in the form of shares instead of
cash.
But coming
in not far behind
receiving a fresh
dividend is exchanging
cash that does nothing but sit there for equity
in a high - quality business that can potentially pay me growing
cash flow for the rest of my life.
Investors
in commons stock are able to earn a
cash return on their investment either through 1) selling all or a portion of their stock and realizing a gain, or 2) via
dividends received from the company.
For taxable accounts,
dividends are taxed as income
in the year they are
received, whether
in cash or reinvested.
As a participant, the policy holder
in a mutual life insurance company
receives «
dividends» on the
cash value which is not income but rather a return of premiums.
The
dividends that I
received in 2013 were up 18 % over 2012, and the DGP generates twice as much
cash as an investment
in the S&P 500.
DRIPs are not equivalent to the shareholder
receiving cash dividends, to be re-deployed
in the secondary market.
In addition, should my lent stock receive a dividend, the broker deposits «cash in lieu» of the dividend to my account (presumably having collected it from the borrower
In addition, should my lent stock
receive a
dividend, the broker deposits «
cash in lieu» of the dividend to my account (presumably having collected it from the borrower
in lieu» of the
dividend to my account (presumably having collected it from the borrower.)
A
dividend earned, whether
received in cash or reinvested, is taxable to you.
You may choose to
receive any annual
dividends your whole life policy earns
in cash, and then donate them to the college or university of your choice each year.
When the portfolio
receives a
cash inflow (
dividends, interest, tax refund, etc.), first top off the money market bucket (up to 2 years again), then top off the short - term bonds (up to 3 years again), then invest any remainder
in equities or long - term bonds.