Quick Answer: What Do You Do With Reddit Dividends?

Some people choose to receive their dividends in cash.

In that case, the dividend will be placed into your investment account or you will receive a check in the mail with the dividend.

Other people choose to have their dividend reinvested in the stock (DRIP – Dividend Reinvestment Program – is the name for this).

How much do you make in dividends?

In the United States, companies usually pay dividends quarterly, though some pay monthly or semi-annually. A dividend is paid per share of stock — if you own 30 shares in a company and that company pays $2 in annual dividends, you will receive $60 per year.

How much money do you need to live off dividends?

Living off dividends works better as a strategy when you have other sources of income to supplement it. Experts often talk about the 4-percent rule, which states that you should withdraw 4 percent of your portfolio each year during retirement to live on, leaving the rest to generate interest.

Can you live off of dividends Reddit?

Not necessarily. If you set yourself up to live off of dividends generated by cash by not DRIPing, you dont really care about the day-to-day movements and prices of stock. Your income will remain constant if you take the cash, and your income will not be affected if there is a downturn/bear market.

Are dividends useless?

Dividends are not useless for the simple fact that if a stock doesn’t pay dividends eventually its price should be $0. A stock’s inherent value is that it generates wealth – that’s why it’s worth money to begin with.