Here's a thought: big index funds like VTSAX pay out dividends quarterly. With this setting, it says the dividend will be re-invested the next day. Doesn't that mean there's a HUGE spike in demand for that index fund on that particular day? Given that lots of people will have this checkbox turned on and be automatically purchasing more all at the same time. Doesn't that mean you're getting a bad price buying it on that day?
you could have just said check the reinvest dividends box after setting up the investment. i have never gone to a vanguard dividend reinvestment program page. i do applaud you for stretching out a simple topic to a 10 minute video for revenue.
@dukeofearlyretirement maybe it will come later. i honestly have never seen the vanguard drip page. i always just go through the dividend options after putting in the investment. it would have been nice for some people to see how the cost basis is recorded on the dividend reinvestments by clicking on the unrealized gains tab of one of your holdings( important info blurred out of course) so people don't get worried about the record keeping.
That was not easy to find that setting. Thanks!
I’m new to investing and I appreciate you taking the time to explain everything thoroughly.
Great video, thx.
I'm glad it was helpful! Thanks for the comment
Here's a thought: big index funds like VTSAX pay out dividends quarterly. With this setting, it says the dividend will be re-invested the next day. Doesn't that mean there's a HUGE spike in demand for that index fund on that particular day? Given that lots of people will have this checkbox turned on and be automatically purchasing more all at the same time. Doesn't that mean you're getting a bad price buying it on that day?
you could have just said check the reinvest dividends box after setting up the investment. i have never gone to a vanguard dividend reinvestment program page. i do applaud you for stretching out a simple topic to a 10 minute video for revenue.
Thanks for the feedback. Unfortunately, I don't foresee much revenue with this video.
@dukeofearlyretirement maybe it will come later. i honestly have never seen the vanguard drip page. i always just go through the dividend options after putting in the investment. it would have been nice for some people to see how the cost basis is recorded on the dividend reinvestments by clicking on the unrealized gains tab of one of your holdings( important info blurred out of course) so people don't get worried about the record keeping.
I on the other hand enjoyed how thorough you were with the video.