My question is, what do I do with my dividends as they are in small amounts and cant be easily reinvested into most companies. Any advice on what to do with my dividends? and also any areas I can improve on regarding my portfolio. - Seedly
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Anonymous

Asked on 15 May 2019

My question is, what do I do with my dividends as they are in small amounts and cant be easily reinvested into most companies. Any advice on what to do with my dividends? and also any areas I can improve on regarding my portfolio.

Hello, I'm 19 this year and just started investing, I've put in roughly $2k SGD into my vickers account. I've diversified slightly into a few sectors but mainly REITs. I've also started a RSF, to buy NIKKO AM STI ETF.

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Rais M
Rais M, Accountant at SME
Level 7. Grand Master
Answered on 09 Mar 2020

Dividends may be small at the start, but you can always slowly accumulate them. It is like a snowball effect.

What I do is whenever I receive any dividends, I will put them into my warchest and track them. As time pass, you will realised that your dividends will grow from $100 a year to $1000 a year or more. With that, you can effective start to use your dividend to buy more stocks.

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MT2020
MT2020
Level 7. Grand Master
Answered on 09 Mar 2020

You are still very young, you can accumulate the dividends into a larger amount before investing it.

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jul)

Level 9. God of Wisdom
Answered on 27 Jan 2020

You could just wait, at this point no need to hurry. if you have invested more, the dividend sums will get bigger (and commissions bound to get to zero sometime ad in the U.S.) so then you will be able to advantageously reinvest

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I would open a separate account and collect all those dividends. I will use it to reinvest into the counters when opportunity arises.

You might want to explore a bit into other markets such as etfs, bond funds to balance out your portfolio.

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Edwin Koh
Edwin Koh
Level 4. Prodigy
Answered on 20 May 2019

It might be small but just treat it as you have extra cash to spoilt yourself. It just the start of the journey , don’t expect it to be big. Slowly as years goes by , the effect of compounding will surely grow it into a sizeable amount. So for now just treat it as a discount in your expenses from time to time.

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Serene Toh
Serene Toh
Level 6. Master
Answered on 16 May 2019

I treat it as extra income (same as bank interest) then just save it aside it to accummulates enough to invest.

Translate from chinese (mosquito meat, not matter how small is still meat)

As you say, you've only just started, so this will only grow with time. Remember the compounding curve. This is just the begining. Jia you.

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Gabriel Tham
Gabriel Tham, Kenichi Tag Team Member at Tag Team
Level 9. God of Wisdom
Answered on 15 May 2019

Don't just see it as a way to reinvest.

See the small dividends as a way to offset your bills too!

If your phone bill is $20, then $20 covers it! Free phone usage!

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HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 9. God of Wisdom
Updated on 07 Jun 2019

Since it's small, combine it with your RSP and plan to progressively increase your monthly investment amount.

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Winshern Ho
Winshern Ho

15 May 2019

Keep it in your warchest. Deploy it when the amount is sizeable again.
HC Tang
HC Tang

15 May 2019

😃👍