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No. of Recommendations: 3
What Are Your Priorities?
A couple of people have asked me for my thoughts on whether to reinvest dividends or take the cash. For me, the answer depends on your situation, and what is important to you as an individual investor, but I'll try to offer a few of my own reflections on the pros and cons here in hopes it may help anyone evaluate their own priorities.

I used to used dividend reinvestments exclusively. More recently I opted to have all the dividends paid in cash. That you are less likely to benefit from the compounding effect of dividends if you opt for the cash should be fairly obvious. You may find it harder to get the money reinvested once you have it sitting in cash.

Cash
By taking the cash you gain more flexibility in terms of what you can do with the money, and with commissions so low you can often get a better deal by setting small limit orders and getting additional stock at a better price than you would if you just took the price on each reinvestment date. But if you're using the money for living expenses or expecting to do so in the near future you might as well be taking it in cash.

If you think you need a little more discipline to build your positions up it can be a good idea to keep the dividend reinvestment feature.

On the other hand, if you don't have enough cash for expenses without using your dividend income you're better off taking the dividend in cash. Otherwise you will be required to periodically sell something.

Consolidating Your DRIPs
If you're participating in a number of Dividend Reinvestment Plans and would like to consolidate these you can opt to have each of them transferred to a brokerage account. Many brokers will do dividend reinvestment for you, and such a move has certain advantages. It can greatly diminish your mail burden and get everything in one place with fewer phone numbers to remember.

Going The Other Way
If you have a stock that has a Dividend Reinvestment Plan (DRIP) you can opt to have your broker send you the shares and then send them in to your company's transfer agent for the purposes of establishing a DRIP.

You have the option either way of choosing cash, or reinvestment.

A good source for information on which companies have DRIPs and the particulars of each plan is Buying Stocks Without A Broker, by Charles Colson which can often be found at local public libraries.

Try Both Methods
In conclusion you might want to try it both ways to see how it goes and try to determine what is most important to you. This applies equally to the questions of broker/DRIPs, or the question of reinvestment/cash.

Over the long haul I think most of us will be better off with dividend reinvestment to get the full effects of compounding dividends.

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No. of Recommendations: 9
Oh paleeeeseee I had more than enough of this "be nice" crap thrown at me in the 50's when I was growing up--turned me into a bra-burning, want-to be hip chick who moved to San Francisco to escape the passive aggressive (at heart, hostile) scary stuff I found in my repressed home town. Viva SF--a wonderful town and what a delicious contrast to middle America of the 50's.

Thirty two years later I'm back in my home town, retired (thanks in great part to intercst and this super board) and am pleased to find that this small town has moved on and people now even dare to speak their minds frequently and freely without fear of the town censors and behavior monitors. A much more interesting place and fun, too.

I, for one, think this board and its posters are great, and want to see it stay that way.




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Oh paleeeeseee I had more than enough of this "be nice" crap thrown at me in the 50's when I was growing up--turned me into a bra-burning, want-to be hip chick who moved to San Francisco to escape the passive aggressive (at heart, hostile) scary stuffI found in my repressed home town. Viva SF--a wonderful town and what a delicious contrast to middle America of the 50's.

Hi Cat. I lived in San Francisco for 13 years, also to escape a city that thought that their was nothing wrong with beating up a fag. I lived in the Castro and the Mission. In the 60's the Castro was Irish. Now it is just a tourist trap. It has a gap and a pottery barn. The Emporium on Market closed long ago. And they just redid Union Square park. The reason I left was because I was so so tired of being COLD all the time.

Leolo
Who is no longer cold but is rather warm all the time in Hawaii.
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1. Oh paleeeeseee I had more than enough of this "be nice" crap thrown at me in the 50's when I was growing up--turned me into a bra-burning, want-to be hip chick who moved to San Francisco to escape the passive aggressive (at heart, hostile) scary stuffI found in my repressed home town. Viva SF--a wonderful town and what a delicious contrast to middle America of the 50's.

2. Hi Cat. I lived in San Francisco for 13 years, also to escape a city that thought that their was nothing wrong with beating up a fag. I lived in the Castro and the Mission. In the 60's the Castro was Irish. Now it is just a tourist trap. It has a gap and a pottery barn. The Emporium on Market closed long ago. And they just redid Union Square park. The reason I left was because I was so so tired of being COLD all the time.

Leolo
Who is no longer cold but is rather warm all the time in Hawaii.

3. Hi Leolo,
I lived there from 1969 until 2000 when I retired and moved back to High Plains country (western NE-small college town) where the cost of living is so low and the shopping and the restaurant scene so pitiful that I will have enough money to live another several hundred years at least. A big day is a trip to Rapid City, South Dakota (two hours north) to a Border's in the mall and lunch at the Red Lobster. Then again, there are lots of things I love--the big and changing sky over the plains, the lack of traffic and hurry-hurry, the ease with which one gets in to see the dentist, gets car service or repairs, has a plumbing leak fixed, does "courthouse" business, etc. is a marvel. And the sounds--the stillness and silence (except for a chirping bird or locust, etc.) it is wonderful and incredible.

Yes, it is too bad about the gentrification of SF. Still a great town though, and I may go back after I save a bunch more money and after I have my fill of peace and serenity--I'm thinking nothing will keep SF down for long, and the phoenix will rise again.

In the meantime, it is 20 degrees right now, and I do envy you having Hawaii (although my weather of choice is rain, fog, gray skies).



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No. of Recommendations: 2
jammerh,

I owe you an apology. I misposted to you a response intended for a different subject--my response was meant for a poster telling everyone to "be nice" and giving examples of what the poster considered a good string of posts as well as a bad string. My response had nothing to do with your considered cash or stocks post, although for the moment it seems to have stopped that discussion dead in its tracks, for which I express regret. Your cash/stocks topic will be picked up appropriately soon no doubt, god willing and the creek don't rise.



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Cat, you may prefer to hear a lot of bickering now, but I notice that you haven't actually been around for very long. Tell me that you're still eager for more flame wars and unending bickering after you've been around awhile.

I like this board too, but different points of view have been tearing it apart, and turning people off.
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No. of Recommendations: 6
I like this board too, but different points of view have been tearing it apart, and turning people off.

I don't entirely agree with this. I don't think differing points of view are tearing it apart. There have been different viewpoints since the board started. You have gotten some very nice discussion on your dividends posts. I think what you don't like are that some people are more argumentative than others. That's because they like to argue. I don't get it myself, but that's just the way they are. I just strain out the pearls and toss the rest out. Any discussion worth its salt is going to have people getting excited about various viewpoints. That's what's nice about this board.

arrete
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No. of Recommendations: 2
arrete, good point. I stand corrected. That was poorly worded. I agree that there should be room for lots of different points of view.

However, I've seen this happen on other boards, and while I enjoy a good exchange myself, and I'm certainly not against a little excitement, but I believe there is a point after which differences of opinion can become very tedious. It can become too much of an ego thing where each party is rationalizing what was said, and more emphasis is given to proving points theythan offering insight.

There is a point beyond which it makes sense to agree to disagree and move on. I don't really believe either party enjoys a long, embittered war.

I love both sides and hate to see them go at each other's throats.
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No. of Recommendations: 4
jammerh: I like this board too, but different points of view have been tearing it apart, and turning people off.

arrete: I think what you don't like are that some people are more argumentative than others. That's because they like to argue. I don't get it myself, but that's just the way they are.


The board community has no business telling posters what sort of personalities they should possess. On that, I agree with you. But it is board business to require posters to follow the TMF posting rules. When posters run afoul of the rules, we are are damaged by the harm done to the threads we are trying to learn from.
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No. of Recommendations: 3
arrete explains:

I think what you don't like are that some people are more argumentative than others. That's because they like to argue. I don't get it myself, but that's just the way they are.


I think you've hit the nail on the head here, arrete. Part of the problem in communication is some people read stuff that isn't there in to what other people write. What one person thinks of as an explanation, another person will see as a personal attack. Reading "between the lines" can cause serious misunderstandings.

My father and I used to love to have heated discussions, and we were both quite happy in them. The only problem would occur when my mother or sister would come in, get angry, and demand that we stop "arguing." We would both immediately turn and say, "We aren't arguing." We didn't think of it as arguing, just discussing with passion, and we were surprised that anyone else thought we were having an argument. We certainly weren't angry with each other. Everyone was happy as long as people who wanted to read a non-existant emotion into the debate stayed the heck away from us. ;-)

My brother and I now do the same thing, but we are smart enough to make sure we don't do it where we might be "caught" and "convicted." I highly recommend the telephone. ;-) We often disagree, but never, ever does either of us go away with hurt feelings. We simply enjoy debating ideas. Hey, sometimes he actually convinces me that he's right!

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No. of Recommendations: 7
Jammerh says:
Cat, you may prefer to hear a lot of bickering now, but I notice that you haven't actually been around for very long. Tell me that you're still eager for more flame wars and unending bickering after you've been around awhile.

I like this board too, but different points of view have been tearing it apart, and turning people off

Reply:
Au contraire Jammerh--I am not new but am instead a longtime lurker (June of 1999) who has read most all of the 87,500+ posts and some twice, and who finds flame wars, endless bickering, being torn apart, to be rarely the case, now or ever, although some few keep trying to claim otherwise.

I do post when the board in general, or a poster I appreciate (i.e. intercst) becomes the target of what I believe is unfair, untrue and/or manipulative criticism (j'accuse Hocus). It is just too silly to bear and ticks me off royally. I am, at that time, a warrior ready to do battle for the general.



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Tmeri, Catsmeow, I agree that criticism can be used as a creative thing. What I disagree with is a need for continuing debate past the point where it is productive.

If you claim you enjoy fighting, or watching people fight I won't argue with that. A lot of people enjoy wrestling or boxing. It's a subjective thing and everyone is different.

But it seems to me that when things get too emotional the level of discussion becomes less productive.

Mud-slinging matches are a dime a dozen.

Quality boards with interesting, and creative input are hard to find.

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No. of Recommendations: 1
jammerh wrote:

If you claim you enjoy fighting, or watching people fight

Uh, you are twisting words. Neither of us claimed to enjoy fighting or watching people fight.


But it seems to me that when things get too emotional the level of discussion becomes less productive.

And it seems to me that things tend to get more emotional when people twist words and mischaracterize another poster's views. You are contributing to the very problem you are complaining about!


I thought you had an interesting view on dividends, and I would enjoy hearing more of it. I recommended several of your posts. I did disagree with you on one aspect, but I don't want to "fight" over it, so I'll keep my thought to myself. Stop being so sensitive. You had lots of people in your corner. Now you are working on alienating them. Sigh.

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tmeri, I'm not interested in getting anyone in "my corner", or winning your approval.

As for twisting words I don't see it like that, but you're welcome to look at it that way if you choose.

I'm here to share my point of view, and that's just what I'm doing. I don't need anyone's advice on how I should be more insensitive.

I believe in giving the emphasis to saying what I think, over trying to manipulate anyone into liking me. I'm not here to be popular, or win clients.



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J,
Well stated, tmeri. I agree with every word, and am also enjoying jammerh's posts generally (except for this last one to us)



"Marry, sir, they have committed false reports; moreover they have spoken untruths; secondarily, they are slanders, sixth and lastly, they have belied a lady; thirdly, they have verified unjust things; and, to conclude, they are lying knaves."

Shakespeare, Much Ado About Nothing, Act 5, Scene 1.

(grin)

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