@Anonymous wrote:
I'm trying to figure out if any of the stock brokerage firms allow one to specify what percentage of a dividend goes back into reinvestment vs. what percentage is paid out as cash.
Just kind of thinking out of the box, but if there was a large amount of money invested in (for example) a monthly dividend paying stock, and your momthly dividend is $10,000... as I see it now, you can setup a DRIP with your brokerage to reinvest that $10k into more stock. Then, next month your dividend is going to be higher than $10k, and it snowballs as it goes. But I'd like to automate the concept of say, reinvesting only 5% of the monthly dividend back into the stock, and pocketing the rest. Each month, then, your monthly dividend increases, as does your income. And if you ever wanted to adjust the percentages, then so be it.
Right now, the only way I can see it is to take the monthly dividend as cash, buy more stock, and pocket the rest. I like the idea of letting be as automated as a "norma" DRIP would be, making it a far more passive system.
Thoughts?
I'm not aware of a way to do this on individual stocks with any brokerage. That is, if you own enough stock of company X that company X pays you $30,000 in dividends in a quarter, you're either going to DRIP all of that or DRIP none of that (or go in and buy Y shares manually each quarter).
If you have an aggregate of stock that pays $30,000/quarter, you can reasonably carve this up by having some stock DRIP and others not. You still have the issue that individual owned equities are going to be 100% reinvested or 0%.
Honestly, this is probably a non-issue for 99.9% of people. That 0.1% either has such a massive portfolio (in the hundreds of millions or more) where they have a single position paying this level or dividends or they're a C-level in a company and have an outsized porportion of their portfolio dedicated to a single stock. The vast majority of people are going to be diversified enough that they could carve this up, or would want to not reinvest that income as the income would be diverted to new positions to further diversify. Even with straight ETF investing in say a 401k, one should be breaking up their investments across at least 5-6 positions at a minimum, and as the portfolio grows, so would the number of positions.
