RE: Broker forecasts19 Feb 2019 19:53
Gerry Hi, Sorry if I am repeating the the same point, But to me, Investing in a high yield, high income share like vodafone, only to re invest the divi seems like folly! They pay you a divi, (which you may pay tax on) unless in an ISA. You then re invest, paying stamp duty, spread & dealing costs. Logically it makes no sense. Why don't they just keep the money(divi) in the 1sp place? As you surely know, every time a divi is paid, the sp will fall by that amount. The whole point of investing in a high yield share (like vod) is to get an income? Isn't it??!!. Then again, if your point is that you only re invest your divi if the the sp keeps falling, then you might have a point, but only if the falls are fake? & you know the sp will recover. of course all this time you are re investing your divi, you are hoping the divi wont collapse.