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Lee

12 Jul 2024

General Investing

Receive dividends in Cash vs Units?

Currently all of my dividends are in cash but is there also benefits recieving them in units?

Discussion (11)

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Depends whether cash or units have higher value. The unit price will be fixed during the public announcement. If the stock price rise higher than the dividend unit, then I will take units.

Receiving dividends in units often means accepting a "lower-buy-in-rate-without-fees", if you have no use for those cash now it's a good way to accumulate those stocks.

That said, bear in mind that odd lots are a little more troublesome to get rid of, wouldn't really matter if you are in it for the long term anyways.

If company is growing and you planning to keep long term, might be good to receive in units rather than cash.

Units save you the trouble of re-investing but beware of odd lots...

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