Tuesday, March 15, 2016


Collected dividend payments today from CNP and MAIN, adding a nice sum to the total for March!  I like seeing these payments roll in week after week and to see the increase in number of shares owned through reinvested dividends.  I'm trying to decide whether to take some of the payments in cash from some of my riskier holdings and use the money to buy more shares in the less risky stocks.  I'm thinking that my portfolio is getting too heavily weighted toward the high risk side, need to balance that out some.  

One interesting fact I noticed when I was researching historical performance on AOD, in which I hold quite a few shares, is that performance was actually better over a 10 year period without reinvesting dividends than if you had reinvested them.  While most of the funds I hold I purchased for monthly income, not expecting any kind of stellar growth, it does make you stop and think about whether you'd be better off to take the cash and put it to work elsewhere.

Should I decide to take cash payments and reinvest them elsewhere, it would slow the growth in monthly cash flow and it would increase investment costs since reinvested dividends carry no commission charge.  So I'll probably do a mix, collecting some dividends in cash and reinvesting the rest.  That would cut down on volatility, keep cash flows increasing every month and keep costs down.

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