What do you normally do with dividend received?

[OngHuatHuat]

1. Purchase back same stock or DRIP
2. Cash reserve for reinvestment
3. Daily spending
4. Spend it on overseas trip or luxury items
5. Put in CPF for tax rebate and form part of retirement funding
6. Pay loans
7. Purchase life insurance or pay up premium for term insurance

 

[SBC]

For me is 2, 3, & 7. Comittment for insurance is quite high.

 

[limster]

Investors (like all humans) possess built-in mental “handicaps” that poison their decision-making. The sunk cost fallacy, hindsight bias, and anchoring are just a few of the most problematic.

Yet perhaps even more troublesome than these errors is the phenomenon known as “mental accounting.” Mental accounting refers to the tendency of humans to develop and make decisions based on purely mental categories. Although they seem rational, the categories we create are often wholly arbitrary — and in some cases, dangerously misleading. if we are not careful, mental accounting can sabotage our investment strategies or even our entire financial lives.

http://thecollegeinvestor.com/8748/examples-of-mental-accounting/

Mental accounting refers to the tendency for people to separate their money into separate accounts based on a variety of subjective criteria, like the source of the money and intent for each account. According to the theory, individuals assign different functions to each asset group, which has an often irrational and detrimental effect on their consumption decisions and other behaviors.

http://www.investopedia.com/university/behavioral_finance/behavioral5.asp#ixzz4eBJjMN00




Money is money. If you differentiate salary from dividend income, you are doing "mental accounting"

 

[Dyhalt]

reinvest

unless i can find better opportunity elsewhere

 

[starfish.starfish]

No. 2, put into warchest, wait for opportunity.
Might or might not buy back same stock.

 

[deepblueli]

http://thecollegeinvestor.com/8748/examples-of-mental-accounting/


http://www.investopedia.com/university/behavioral_finance/behavioral5.asp#ixzz4eBJjMN00




Money is money. If you differentiate salary from dividend income, you are doing "mental accounting"

Agree with limster. I would treat it the same as or combine with salary or any other income. Diversify the income in the way I would do when I receive salary.

 

[HairyTitaniumBalls]

1. Purchase back same stock or DRIP
2. Cash reserve for reinvestment
3. Daily spending
4. Spend it on overseas trip or luxury items
5. Put in CPF for tax rebate and form part of retirement funding
6. Pay loans
7. Purchase life insurance or pay up premium for term insurance

8. call cheekon/FL.

cheekons and FLs are humans too, so i wont put them as luxury items.

thanks.

 

[frenchbriefs]

If I'm investing for income I would spend it of course,but if I'm building wealth and trying to reach the next milestone asap(10k,20k,30k,50k,100k) and get out of this shithole before I turn 30.of course I will dump everything I got,as fast as I can.

 

[windwaver]

1. Purchase back same stock or DRIP
2. Cash reserve for reinvestment
3. Daily spending
4. Spend it on overseas trip or luxury items
5. Put in CPF for tax rebate and form part of retirement funding
6. Pay loans
7. Purchase life insurance or pay up premium for term insurance

3)
8) Save up (not for investment)

 

[cybercom8]

reinvest in the same shares..has paid off spades over the years

 

[frenchbriefs]

Depends on how much the dividend is,if its 200k I'll will go buy a Renault and disco dance to modjo "lady hear me tonight" all the way home.

 

[lasnoblur]

daily spending aka drink coffee.

 

[cybercom8]

Depends on how much the dividend is,if its 200k I'll will go buy a Renault and disco dance to modjo "lady hear me tonight" all the way home.

alamak, like that how to build wealth?