Dividend-News
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To DRIP Or Not To DRIP A BDC: Part 2 A Look At Yield
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Published Tue, 30 Aug 2011 14:33:41 -0400 on Seeking Alpha
<< Return to Part 1 In my previous article, I discussed whether it was better to reinvest your dividends directly with a company or if you should pocket the cash for your own purposes. The results were a mixed bag and no definitive statements were made. One of the comments inquired about reinvesting at the 52 week low vs. the 52 week high. The commenter was thinking along the lines of trying to time when you would want to reinvest. This article takes that idea one step further and looks at the results of reinvesting based on the current yield of the stock at the time of the ex-dividend date. The current dividend yield is defined as the dividend amount annualized (times 4 for quarterly payers or 12 for monthly) divided by the current stock price. The companies to be examined for this article will be the same list as... Read more


