DRIP

ThicccBoiSlim

You've just shown us all you have absolutely 0 idea what you're talking about lol. DRIP has not even the faintest thing to do with selling covered calls.

OhtaniStanMan

Dividend stocks are DRIP and not share price bucko

DoctorNezuko

This means you can log off and check in 30 years. Hedging against yourself allows you to be certain that you will have funds in the future when you need it, but your full portfolio will be slow to grow. Are you doing DRIP at the moment? Rotate your dividends into which ever side is underperforming at any given time. Just make sure you put it on your calender to do it at least once a month as needed.

CrayComputerTech_85

I had DRIP in GE for almost 20 years. The spin-off in part just made my retirement lock in last fall. $MSFT was $20 something during the 2008 financial crisis. I didnt start DRIP on that until it broke $120. Long terms goals are long term goals. I'm buying more MSFU during this slide too.

Ok-Lobster-919

Stocks aren't fun. You don't want to encourage the kid to check the market. Buy $100 of any stock that will survive the next 50 years, set up DRIP on it and forget about it entirely.

Ok_Worldliness2805

I might be higher than that now with the DRIP, haha its been a little while since I calculated it. Either way, what a home run for us both. Just a value play at this point!

OhtaniStanMan

You don't buy a 5% dividend stock for long term g ains. You buy it for DRIP. 

zooka19

Consolidating my old pension pots into a Trading212 SIPP, I'm more active on my investing, but thinking to just do all world, or split SP500 with International and turn on DRIP. This won't be getting any new cash, unless I have a new job with a different pension provider, then I'll consolidate again.

MaximumCarnage88

Ultimately you pay the tax. Deferred or not the tax man doesn't forget. The defer makes your DRIP more effective, for a time. But if you plan on DRIP you may as well just hold the underlying for better total return, and less risk. Risk of missing vertical rocket ships from your CCs. Income is sugar high. Tax free income is fentanyl. Qqqi lures you in. Looks good on paper but you will fall behind QQQM year after year. And pay more ER for the privilege.

Agitated-Ad-504

Dividends with DRIP and consistent contributions. 😮‍💨😮‍💨😮‍💨😮‍💨

No-Engineer-6357

I rotate everything as needed except my set and forget ETF. I watch and listen to the market. If something I have reaches $100 over my point of entry, I'll buy something else with that profit that has acted and looks solid for the future in whatever sector it's in. I don't do do crypto, gold, etc.... or anything else currency related or overtly American. I keep my eyes and ears overseas and keep everything on a DRIP. What I don't do is touch my ETF unless I'm adding to it. I've only been doing this for about a year and I haven't lost money.

samuelpile

Avoid dividends. They are materially identical to the sale of stock. At your age, you should focus on long-term growth for retirement. Once early retirement becomes an option, you can consider an income-driven/dividend investing plan. Prioritizing dividend reinvesting, or DRIP, is silly IMO. In a taxable account, a dividend payout is a forced taxable event, which creates a tax drag on growth. In a tax-advantaged account, if are reinvesting something like SCHD seeking greater total return you could just.... pick an ETF with greater total return. Dividend proponents (especially SCHD'ers) will say that it is less volatility, it has less of at tech tilt, that dividend aristocrats are always going to increase the rate, etc. etc. It is an oversimplification to say that total return is all that matters but all of the aforementioned traits of dividend ETFs are descriptive traits and not advantages. If you want less volatility, there are options with more total return. If you want less tech, there are options with more total return. If you want stocks that will only go up, there are options with more total return. For young investors, it is mostly a psychological tool that keeps the carrot in front of you. The best investor is a diligent one, and if getting $4 every month from your brokerage is enough to keep you drooling then go for it p.s. I never see the SCHD'ers and dividend'ers commenting to prioritizing your tax-advantaged accounts (since dividends sit best in brokerage), which I think is a big drawback for those subreddits getting popular.

British_Rover

Ah ok I didn't know that. I haven't worked for UPS in a long time and I worked for UPS after 1999. I don't touch my UPS stock it just sits there on DRIP.

Readditlovesbans

I was a bit late on Bank of America and got it in 2010\~ due to Oracle of Omaha. I wish i wish I bought more throughout the 2010's and didn't turn on DRIP until 2020\~

siboq

Did you look at Northern Oil & Gas? I’ve held them for a while, accumulating more along the way and letting the dividends DRIP. Solid company currently underperforming due to some major acquisitions in 2025 that should payoff handsomely in 2026 with the shortages and elevated prices.

Chewyfire156

I’ve put my gains into bonds and let them DRIP. I continue to buy growth in all three caps. When we get run ups in stocks I move gains into bonds when they are down. And vice versa. This is my 457/401k strategy. It has worked well for me the last few years. I’m up 20.5% since April 25. Currently at 65% stocks 35% bonds. We are going to run it hot next couple of years to “out grow” inflation if that doesn’t work we are stagnant for a few years until we actually balance the US check book by manufacturing again. Keep diversifying

Nick_OS_

My uncle put $10k in Apple in 97’. I think he said it’s worth over $2 million now with DRIP

bamadesi

Does he DRIP or no is the real question here

frankyseven

So if you only held the top 3 companies on the S&P500 in equal weight, rebalanced on January 1, and DRIP, you'd have an average annual return of 19.12% since 1980, 19.42% since 1990, 18.2% since 2000, 26.46% since 2010, and 32.78% since 2020. Buying high and selling high works better than 95% of hedge funds and you'd beat Buffet since 1990. AKA, you'd be considered the greatest investor ever.

GiGiAGoGroove

5 yrs away. We held cash all of 2025, So to me taking 80k/10% return is like 2/3 year worth of living expenses. I know even after a dip/crash it could rally again but is it appropriate to not DRIP when the price is at ATHs?

SnS2500

\> So IRA portfolio has risen 80k since January and would like profits. Huh? This is an IRA. You have your profits. If you sell some stocks and hold cash in the IRA, you have the exact same assets, except instead of stocks you have cash. Whatever you are thinking, get your head screwed on right. If you don't want some of the stocks you own, sure sell them, but don't delude yourself that changing where your money is in an IRA is anything more grandiose than rearranging the chairs. \> Is it better to DRIP the Q2 dividend and then take profits or is there a better order to do that? Doesn't matter.

icnews10

It seems that there’s a tendency for most folks to reach this stage psychologically after a period of time where the portfolio no longer feels “abstract” but is really tangible money and they don’t want to surrender it. What makes this tough is distinguishing: “I want to diversify.” from “I am letting emotions cloud my judgement on the back of recent gains.” As both will make you go in completely different directions, although one may be tricking the other into thinking it's the same direction. Also interesting is the way the discussion about DRIP can serve as a substitute question: “Do I still want to optimize for future compounding, or do I need more optionality?” The latter is typically more important.

justin_b28

next time around, only cash out what you put in plus say 20% for some profit, the rest is house money and let that shit ride. Been very happy with this, the caveat is sometimes I kick myself in the ass for not having more shares of the one thing like KO and LLY KO is boring as hell, but it has earned me a lot of money over the last 8 years or so LLY I got on one of the COVID dips (not the big big one). Started with 100 shares, sold half to cover, then rode out 50 + DRIPs. Sitting now at 70 shares just from dividend reinvesting. KO is similar, just DRIP those quarterly payments

Nice-Truck8806

their DRIP is actually terrible. they consistently pay dividends and interest late (usually a day but sometimes more), the DRIP always gets the worst fills of the day, and if you're not careful it can create fractional shares that they won't even let you sell.

Fit_Pudding_9863

Many companies that pay a dividend are very mature/stable companies. While no dividend is guaranteed, if you have a portfolio of 10 long term, consistent dividend payers, you are highly unlikely to have all 10 cut or hold their dividend in the same year. Right now I DRIP because I am growing my portfolio. There will come a day when I want steady income from my portfolio. I will be able to calculate my projected annual dividends, factor in a 10% reduction to be on the safe side, and add the dividends to my annual budget. If I want $50,000 a year from my brokerage account in retirement and only have non-dividend paying stocks, I have to decide what stock to sell and whe throughout the year. Once I sell it, it is gone. This also means you have to sell in a bear market unless you have enough alternative sources of income to cover your expenses in a down year.

Zigxy

Berkshire doesn’t really DRIP The 400m shares of Coke have been the same since 1994. They used their cash for other acquisitions. Although lately they pretty much just sit on their money.

ptwonline

Before online brokerages and zero commission trades it made more sense because trading was time-consunimg and expensive. People do it now because dividends *feel* a lot safer. People are loss-aversive and dividends are returns extracted from your investment so that the rug can never be fully pulled out from under you later if a company crashes and burns (though people often just DRIP their dividends which kills that theory, but people still feel safer that way.) They also worry about sequence of returns risk and having to sell while the stock price/market is down and their portfolio failing. So they think "if I never sell, I will never run out of shares." This also leads them to avoid bonds because they feel safer and in this era of low bond returns this can boost their overall return vs someone who has an index fund and say 40% bonds for safety. These days there are also all these financial influencers peddling "passive income" leading people to buy all these high yield "dividend" products. They see it as a way to put money aside to generate income for themselves now and into the future, but since traditional dividends pay so little these passive investors would get almost nothing from the little bit of money they set aside. So they get lured in with all these promises of 10, 15, 20% returns which have looked really good in a rising market because they pocket all this money and their shares haven't really collapsed in price and so they see it as a kind of can't lose situation where they get such eye-popping returns and feel safe. Alas, this is a trap and a lot of people will feel the sting at some point if they don't get out.

Soberishhh

If you don’t have a Roth you should start by maxing out contributions to that yearly. 7500$, if you did that in the S&P at a below average return you’d have over a million dollars alone in 32\~ years (including DRIP/ reinvesting dividends) completely tax free. Anything over that is just extra

DreadPirateRobertsIl

Dividend plays can be fun. I bought IRM during Covid as an income play and stacked the 8%+ dividend with DRIP for years at a depressed price. Then once it got wrapped up in the AI buildout / data center bubble, the price soared and the cheap shares I had been stacking compounded nicely to become one of my best plays. Did something similar with USAC. Granted this requires finding extremely high dividend stocks that will NEVER cut their dividend.

meezy-yall

Besides buying it cheap like others said the real magic is in the DRIP . He’s using the dividend payout to essentially bank more free shares which in turn ups his dividend payout. Compounding over decades it really adds up

the_Q_spice

Also in terms of Roth accounts or DRIP: Double compounding interest. The more shares you get, the more dividend you get; the more dividend you get, the more it reinvests into shares; the more shares you get… TLDR; Positive feedback loop, and profits in Roth accounts are tax free (subject to withdrawal restrictions).

xXBleedOrangeXx

$DRIP Was wondering what anybody's experiences are or if I am making the correct read here. I feel like oil and gas prices can't get worse than they are now. With this inverse 2x leverage ETF, I feel like this could be a easy 2x play. Am I reading into this correctly or am I an idiot? Currently sitting at $4.62, the beginning of the year it was $10

xXBleedOrangeXx

$DRIP Was wondering what anybody's experiences are or if I am making the correct read here. I feel like oil and gas prices can't get worse than they are now. With this inverse 2x leverage ETF, I feel like this could be a easy 2x play. Am I reading into this correctly or am I an idiot? Currently sitting at $4.62, the beginning of the year it was $10

Miguel1219

Consolidate consolidate consolidate creating your own mini version of an S&P 500 ETF. I see a whole lot of fractional shares of just about everything. The only thing you have a full share of is two dollars a share you don’t even own a whole share of Ford and Ford is $12. Just ask yourself. What are you trying to accomplish with your investing? Are you trying to invest in household names that you know because that’s not a very good strategy that’s what I used to do. I’m no master investor or anything. Don’t get me wrong. I don’t know too much more than you might, but if you were to sell everything and put everything into VOO, VTI, SPY, are any big ETFs that mirror the S&P 500? You would get much more diversity and exposure over so many more companies with just one share of any of those ETFs as opposed to having fractional shares of multiple single stocks. Verizon is a really good dividend stock. I have it myself, and I have a few shares of it, but I would encourage you to put everything into an S&P 500, ETF and cautiously branch out into a single stocks for dividends and take full advantage of the DRIP.

nivek_123k

a person can sit the markets out waiting for a correction a looong time. it's better to be a player in the game than sit on the sidelines. have a plan and stick to it. DCA/DRIP for the win... that's the only edge the general public has.

shaggrugg

this image on etrade looks even better when you have DRIP on for 14 years.

dwoj206

I mean SPYI&QQQI return 12+% per year + market RoR. Doubling in 8-10 years totally possible. Obviously potential for drawdowns, but you still get the 12% per year. DRIP and chill.

jeff8073x

I've been holding oil tankers for 5 or 6 years now. And no plan to lose em. With DRIP - some up over 1000%. Was reading that the impacts from this disruption will take years to resolve. For tankers it's related to countries replenishing their reserves or short term new routes while middle east gets back up and running to max. Plus some permanent tonnage shifts from countries that'll want to simply avoid hormuz - tiny impact, but meaningful. Combo that with SK cornering a lot of the market, and tankers seem to have room to run.

breakyourteethnow

I know that's very hypothetical, what can count on is income generation through covered calls yielding around 10%, repurchasing of shares through DRIP at cheaper prices if market dumps allowing for faster recovery, and the new shares accumulated to purchase more shares compounding. These are all things the chart won't show percentage wise just looking at a 5 year chart for example. It has less beta and volatility than QQQ. They only sell covered calls on 25-75% of the underlying, depending market conditions so there's no nav erosion and actually make an income.

0o0o0o0o0o0z

> I did do this: I estimated aprox 2 years of expenses and converted funds into 3 & 6 month rotating CDs and bonds. As the bonds mature, I keep 3 months of cash. Why not just put that into SGOV? I think it's pretty tax-efficient, depending on your state (no state tax). You could just DRIP it. Probably would be a better bang for the buck?

Civil-Heat-9913

Sit on cash for a little and wait for private debt to crash. When it does, buy up BDC at cheap prices and turn DRIP on. I’m a debt collector. I don’t collect on business debt but some of my colleagues do. Bozo business owner sells future receivables to a company, fails to pay them back, you know the rest of the story. I will add these loans are guaranteed by a person as well, but that doesn’t usually help.

TheoryOfTES

I'm in my early 30s and currently have 0. I dislike retirement accounts. However, I do have 2 broker accounts, one of them acts as a "retirement" account. Its nothing but 50/50 of VOO and QQQM with DRIP. It's currently sitting at 175k. My other one is just several hand picked stocks, when I sell one, any gains it may have then get flushed into the "retirement" one. It certainly not the most tax advantageous method, but it does come with other freedoms, easily accessible if needed, no early withdrawal penalties, I can put it elsewhere if I need supplemental income.

patrickswayzemullet

But same thing still. Forget the property or warehouse. Great pay $500,000 (34%) for your $1.5M home. It really doesnt matter. The point is you have higher money in hand. You have $4.5 for VOO that you can DRIP and sell covered calls or wheel. So you get 10%. Thats 450,000 per year. You likely arent blowing all that per year. So you pay the mortgage, and reinvest the remainder (DRIP). If you bought your home outright you have $3.5M, generating $350,000. So for mortgage to come worse off, all the associated costs must be $100,001 or more. Because at that point you are better off paying cash. But really how likely is that? (I think again, because people just read the first chunk they find controversial, I would still pay off for PERSONAL peace of mind. Mathematically harder to justify paying off right away. I may not take the whole 30 years, but I definitely prefer the larger chunk to begin with especially as a new homeowner).

patrickswayzemullet

Especially in the US when you have that stupid flat 30 year mortgage. What are we doing here? Do you really need an explanation? If you have $5M cash and want to retire, you could buy one home in SF for $1.5M outright. OK great. You very likely are doing fine with the interest from $3.5M. I concede. Or you could just buy two such homes for 2x500,000 downpayment, turn one to rental. You get cashflow. Or you just buy one for $500,000, so you still have $4,500,000, and just use the interest to live and pay off the cheap mortgage. Your market performance likely beats the mortgage rate. What if you have $50M, $500M, $5B, same principles. You can manage these cheap debts , buy multiple homes for investments or business workshops, and come out ahead. But I also concede, if i was in this situation I would be more inclined in paying cash knowing I would screw up the investment and DRIP. And that relief of having paid off your home is a big deal. Just economically, the richer you are the better off or the more well-placed your money will be by playing these cheap debts… when you are poor you arent thinking about these because thats your only option (mortgage). I hope you were kidding btw. This is super obvious.

LLuxifyLife

Or.... do the boring thing take 75% of that put it into REIT and Dividend Bonds, and make the Dividend Bonds DRIP, this and use maybe 3-5% in a high % compounding hourly interest 15-20% crypto account with no lock up time line and now your sitting on boring but working money and u can still take 25% or less and see if you are jusf a fluke win or if your able to control yourself and on take plays which stats and probs say will go in your favor. This strat isnt about the inevitable lose, dont listen to them. If that was true institutions would be losing they dont. So you can try balancing the boring but working money in a completely different accounts portfolio and making slow compounding money on the backend, and high probability plays with the 25% you keep in options.

PowerLion786

Did a lot of reading when getting into the market. Read about an investing club that did "time in the market" from the start of last century. That's through WW1, the 1920's, the 1930s, WW2, the 1950s and through to the 1990s. DRIP investing. Stopped following, but I copied them. They all ended up multimillionaires. Let's just sat time in the market works very well. Look at BRK.

BNA-mod

2.8% is below inflation. Not even a consideration at this time. DRIP is not always great. I like to pick where to reinvest my dividends. Your portfolio seems fairly well balanced. Especially if you have a tax deferred account, consider adding a higher dividend generator like PDI (noting that lowest share prices are usually towards months end since it pays monthly dividend @15%.

LosReason

Cancel the DRIP and pay the mortgage with the dividends. Then you do not worry the monthly payment, which is probably your wife's concern. Meet in the middle, you will leave some on the table, but she can sleep better.

shawman123

Quality of revenue and customer satisfaction makes it one of a kind. I feel their revenue has been held back by supply than demand. So it will continue to do well over next year. I am in it since 2017. Sold part of my holdings in 2021 and late last year. Still sticking to it with the rest. Thanks to splits and DRIP, I still have way more than what I bought plus having gotten back my initial investment and some.

samarijackfan

Still have my one paper share I needed to purchase to start my intel DRIP account. I think that was 15 years ago or more. I sold all the rest when Apple said they were moving to their own chips.

Beagle001

DRIP? Be warned

nivek_123k

I have no idea. I look at the GLD/SLV explosion and the Indexes, and I just don't understand how both defensive plays and indexes are skyrocketing. I own broad markets, dividend aristocrats, bonds, t-bills, b/c those make sense to me. Own the asset, DCA/DRIP the yield, ignore the daily panic in price movement. How/why metals price has exploded indicates that the market itself should be imploding, yet here we are with all time highs... idk.

alwayslookingout

They need to come with a new feature for DRIP to auto buy 0 DTE.

KimboFL

Then don’t ever DRIP your divvies 🫣

ajaykumar2023

JEPI is a solid contender for an IRA when you're 5 years out from retirement, but it's important to understand exactly what you're buying. Here’s a breakdown for your situation: Income vs. Growth: JEPI is designed for income and lower volatility, not capital appreciation. It uses a covered call strategy (via ELNs). In a massive bull market, it will underperform the S&P 500, but in a sideways or slightly bearish market, it shines because of the monthly dividends. The Expense Ratio: At 0.35%, the expense ratio is actually very reasonable for an actively managed income fund. It won't 'eat up' your returns as long as you value the monthly cash flow and lower beta. The DRIP Strategy: Since you have 5 years left, DRIP-ing those monthly payouts is a great way to compound. By the time you retire, you’ll have a larger share count generating the 'supplemental income' you mentioned. Market Outlook: You're right that it's better in choppy markets. It won't protect you from a total market crash (it will still go down), but the volatility will likely be much lower than a pure equity fund. One tip: Since it's in an IRA, you don't have to worry about the tax drag on those monthly distributions, which makes JEPI even more attractive there compared to a taxable account. Overall, at 7%-12% of your portfolio, it sounds like a well-measured allocation for a 'sleep-well-at-night' income stream.

BlindTreeFrog

> over the past few months. yeah, but at the same time over the last 10 years, VOO ran away from SCHD. 10,000 invested with DRIP on Jan 1, 2016 SCHD today -- $30,279 VOO today -- $38,793 That said, I feel like most of VOO's growth was in the last 3 years and the two were close enough to pace each other 2017-2022. https://portfolioslab.com/tools/stock-comparison/SCHD/VOO

unurbane

At the same time you can do DRIP relatively successfully. What matters though is tax efficiency over time.

nivek_123k

all that is so wrong. 1- anyone with earned income should invest some of it. a roth IRA allows a person to withdraw contributions penalty free. 2- the s&p returning 6%-7& was historical before wanton money printing. recent returns (though not indicative of future returns) is much higher. DRIP and DCA is a superpower for investors. 3- $1 today is more valuable than $1 in the future, which is why an interest yield has to exceed inflation. without risk there is little reward (the risk free rate). 4- you should invest in yourself AND invest in the market. these things are not mutually exclusive.

Stunning-Mobile-3979

Congrats, you accidentally started an Intel DRIP in reverse 😂 Roll that shit out if you can, give it some time value and pray for a pullback, or just accept you’re the proud owner of a boomer stonk now and start selling covered calls till retirement. We’ve all sold “easy coffee money” and ended up paying for the whole damn Starbucks franchise, you’re not alone.

Emotional-Breath-838

SCO DRIP OILD These are inverse and leveraged. YOLO!!!

clunkclunk

My Nana (well actually she was "Grandy") bought me 2 shares of Intel on my birthday in 1995. Somewhere around $16.50/share I think. I still have them. With splits, and DRIP - it's up to 75.6 shares. $5700 in 30+ years, that's actually an annualized growth of 18.5%; not as bad as I thought. I'll probably keep holding them.

OCDano959

Well, time will tell if that was a good move. I get it, because I’ve felt that same way a number of times. I actually timed the dot com bubble and made out quite well. However, after that, I may have made less than 10-15 sells since (decades) and committed to keeping my “core” which made up more than 70% of my portfolio, and just reinvested, every two wks, DRIP and hold. The thing that I do change when I feel the market is way overbought, is just rebalance and stop the drip. That way, I’m still in the game, but not purchasing at a higher valuation AND accumulating powder. So I’m guessing you sold when S&P was ~ 6600? Personally, I think we test that level again this Summer, but who knows? Thats the problem w selling, as you may be waiting awhile to get back in if your waiting on a lower entry pt than your exit. Nevertheless, I hope you’re not actually in real cash. Inflation which is already forecast to be in mid 3%, ain’t showing much sign of abatement and will eat up your buying power. At least put in a MM to get some yield. G’luck OP. 🍺

barrel4barrel

if you’re young there’s like next to no point in heavily dividend investing. I’m not saying write it off completely but it’s kinda tarded imo. Divs are for when you have already amassed a fat cash pile and need to bump your risk down. I guess everyone has their own tolerance to risk but given that you’re a few decades to retirement, why not leverage that? If you’re young and you’ve got 2k I would be putting that into something that can actually grow meaningfully. QQQ pretty easy but if I was you I’d honestly do enough DD to pick 1-3 single stocks you feel confident on. Just don’t see 2k going a long way for div investing even with DRIP, can prob use capital in much more efficient way for now

greenpride32

QQQI sells covered calls to generate distributions. It's very different than a company which pays dividends from profits. What is a covered call? It means you own the underlying stock (it's "covered"), or in this case the QQQ ETF, and then you sell a buyer the rights to future gains, in return for upfront cash today, the options premium. Your options premium is set at current market value, but future gains have limitless potential - or in other words, you might collect a $1 today and that's it, but the buyer of your option has potential to gain $2, $5, $10, $20. Why this is important is QQQI has limited upside gains, but has no downside protection. When QQQ goes down by 10%, your QQQI NAV goes down by 10%. But when QQQ goes up 10%, QQQI will just get a small fraction of that (in theory if QQQ goes up very slowly and below call strike price, QQQI could capture all upsdie - but odds of this happening long term is about zero). I'm not going to lookup exact numbers, but from my memory, QQQ was up about 25% in 2024 and about 20% in 2025. QQQI debuted in FEB 2024, so not quite the full stretch of 2024-2025. However, QQQI NAV only gained about 5% during that near 2 year stretch. Why such different results? Because all the upside gains were sold off in return for the immediate options premium. But if you calculate out the distributions, and even better DRIP it, it doesn't look so bad for QQQI compared to QQQ in total return. Let's look back to QQQ gains - 25% and 20%. Those are both over the historical average yearly return for QQQ. So what happens when QQQ has more muted years, or even worse, negative ones? QQQI will surely lose NAV. It looks "great" today because QQQ had 2 overperformant years. It won't look so great when it has 2 underperforming years. When QQQI loses NAV, it means the amount of underlying QQQ it holds is going to be less (this is very different than holding QQQ and riding out the ups and downs - you're losing cash to buy the equity rather than just owning the equity). Holding less underlying means your options premium and distribution amounts will be a smaller nominal amount, despite the yield likely remaining in the same high band of 13-14%. VOO is considered safe because you own shares in companies that have trended up over time. When the shares increase in value, you own every single cent of those gains. Let's say hypothetically VOO goes from $500 to $300 and the back to $750; the entire recovery is yours. QQQI is considered risky because it has no downside protection, yet the upside/recovery is capped. So you're banking on the options premium outweighting the "losses" or "missing chunks" of recovery increment that you sold off. In the short term, it seems reasonable. But as you stretch out the timeline well odds are you're going to lose a sliver here and a sliver there. If 25% and 20% underlying (which compounds to 50%) only gets you 5% NAV gain, I think it's fair to say long term NAV is flat or negative and nominal distributions have little chance to grow over time, and more likely declining. Disclosure: I own both VOO and QQQI. My QQQI is meant strictly for income. I view it as always better than HYSA return, even in the long run, and I need/want the income today. If you don't want income today, and want growth no way do I suggest QQQI. Fun fact - SCHD yields 3.5-4%. Over past 10 years, it has roughly gone from $12 to over $30 and distributions went from $0.40/share to over $1/share. That puts the returns for each at over 150%. It also means your yield on cost is over 8%. If time is on your side, SCHD will beat (crush really) QQQI in the long run with both capital appreication and yield on cost.

2Loves2loves

Slowly, with compounding over decades. buy high quality equity stocks and hold them. look at DRIP's & dividend aristocrats [kiplinger.com](http://kiplinger.com) is pretty good.

roastshadow

Hello. It seems that a definition is needed: Withholding and taxes: Regardless of whether tax is withheld from dividends, you must pay the taxes. DRIP might have withholding, might not. Still you have to pay the taxes. All brokers have standards for when withholding is required, suggested, default, or can be avoided with dividends or gains. But, you still have to pay taxes. So, if you have stock, do DRIP, and no withholding, yes, the full dividend is reinvested, and you pay the tax from somewhere else. Back to transfers - if it is stock, then consider selling from one account, and then buying in the other instead of transferring. You'll pay capital gains - possibly long term cap gain rate - and then reset your basis. As long as you have a gain, then there is no wash sale issue either. Double check on the transfer fees. With that high of a fee, you must have a whole lot of stock. IBKR lists ACATS transfers as "no fee", so it would be whereever you have the stocks now charging a fee. [https://www.interactivebrokers.com/en/pricing/other-fees.php](https://www.interactivebrokers.com/en/pricing/other-fees.php) Sofi is $100 ACATS fee to transfer out [https://support.sofi.com/hc/en-us/articles/360044740731-Is-there-a-charge-for-an-ACAT-transfer-Does-SoFi-reimburse-other-fees](https://support.sofi.com/hc/en-us/articles/360044740731-Is-there-a-charge-for-an-ACAT-transfer-Does-SoFi-reimburse-other-fees)

Itchy_Document_5843

I suppose you're in HK? Anyway, regardless of which broker you use, the taxes are still the same. There's no way around them. All brokers deduct the taxes automatically. Also, I'm surprised that any broker doesn't offer DRIP. Lastly, talk to your new broker and see if they would cover the transfer fees. They might if the transfer is big enough. Otherwise, why not sell all shares, withdraw to your bank account, and then fund your new brokerage to avoid the transfer fees?

Itchy_Document_5843

I suppose you're in HK? Anyway, regardless of which broker you use, the taxes are still the same. There's no way around them. All brokers deduct the taxes automatically. Also, I'm surprised that any broker doesn't offer DRIP. Lastly, talk to your new broker would cover the transfer fees. They might if the transfer is big enough.

Proper-Travel-1089

With Sofi, each dividend faces a 30% withholding tax. IBKR offers DRIP; dividends are not withdrawn but reinvested, which helps reduce that unnecessary loss of money. Most importantly, they don't provide NON-US Stocks, so in the long run, I would be affected by estate or inheritance tax if the total assets exceed 60K.

nth_derivative

100 shared of $DRIP bought on Apr-14-2026.

OhtaniStanMan

DRIP is always a big portion of my portfolio  Always easy money longterm

NecessaryOk6148

Yo Bros! Buy DRIP Good entry spot. Then hold

Heavenisaplace176

$DRIP

MzSassy2U

Keep what you have, let the dividends DRIP and put all new money into the World ETF.

Stonesfan03

You could buy some shares on margin, say 10 or 20 shares. Then wait 30 days, and sell some of your higher cost basis shares and lock in a tax loss and lower your average basis. Or even best case scenario, the stock skyrockets in the next month and you can sell your higher basis shares for a gain and keep your lower basis shares. Just make sure you have DRIP turned off in case you sell for a loss so you can avoid a wash sale.

NecessaryOk6148

Anyone else shorting oil? DRIP

nivek_123k

have a plan to invest in broad market ETFs with a low expense ratio. set a schedule; monthly, quarterly, semi-annually and STICK TO IT. DCA/DRIP is the only investing superpower that most retail investors can obtain.. in times of panic maybe add a few more shares in drastic selloffs. maybe cut back investing when the market is panic buying near ATHs.

HeftyTNVols

If it’s a ceasefire u Best Buy DRIP

NecessaryOk6148

My DRIP oil short is doing nice. Just gonna stay in until tonight

SwingTradeMasters

You stated investing, so if it's a dividend paying company simply enroll in the DRIP & enjoy. Also understanding that the opportunities are abundant and the Market isn't leaving within our lifetime helps

trsx5

OILD / DRIP if you want some leverage against the oil trade. NFA

HeftyTNVols

Guys! Maybe make up your losses by buying DRIP Double oil short etf

Lingweenie2

Well yes buy the fear and sell the greed. (If you’re going to sell at all.) But overall, investing is more about the accumulation of wealth over time. Not exactly buying this and selling that when times are “good” or “bad.” People need to buy and hold, DCA, DRIP, and repeat over the course of years. And that’s about it. You have no idea how good or bad things can get. Getting in and out has been a fairly bad strategy overall. Buy during the good the bad and the ugly. Don’t think about it, don’t touch it, just let it automatically do its thing over time. I personally only sell for one of two reasons; Either I’m using margin at the time and I need to reduce debt. (Which can be risky if you’re inexperienced or get too crazy over leveraged .) Or I’m deliberately tax loss harvesting to reduce taxation. I always have auto buys each week regardless of what’s going on. The frequency and amounts don’t matter. It’s whatever you can afford to do and personal preference. Anyone needs to do this all of the time. Along with DRIPing dividends. Usually in markets like this is when I’ll do addition buying though. I’ll hike my weekly DCA in what I own. And I’ll manually buy incrementally when fear becomes strong and the market grows increasingly weak.

Unemployable1593

waitaminute… how is DRIP up like 4%

cdude

I'd get rid of SCHD and JEPI. Did you watch a tiktok influencer mention the terms DRIP, cash flow, or passive income?

Incorgnitos

Do both. It's not about one or the other but your risk tolerance and whether or not you think long term, accumulation of an ETF or specific dividend equity like Coke will be better on the back end with DRIP + return growth.

Ok-Improvement-3670

What is the allegation? This is a very vague statement regarding the DRIP.

bullmarket2023

If the market trades sideways, great time to write options and collect a premium or invest in dividend paying stocks and DRIP. Or maybe rebalance and look for value in other markets like real estate. Maybe your miserable life will remain stagnant but certainly not mine. You're welcome on the free advice.

angelcoal

You sound like me. Been trading about 20 years, then got "serious" in January of '25 when I was let go. Was fortunate enough to have a decent severance payout and quite a bit of company options to start with. I have a "safety net" of dividend paying stocks currently on DRIP that would probably be enought to modestly live on if I stopped the DRIP. Sell options (call and put spreads depending on market) on SPX and NDX most days (tax advanatages of 1256 contracts). Also sell weekly/monthly options on "over-hyped WSB" tickers. Round it out with CSPs on beaten down stocks that I would like to owns, and some covered calls on some of the shares I own. Only been 15 months of full time, but so far so good.

Jumpy_Nose863

Why would you sell now?? They are one of the biggest beneficiaries of all this stuff going on. They pay a nice yield, are shareholder friendly, buybacks etc. Most importantly the current oil prices are being held down based on reserves and so forth. The best is yet to come. I'm not sure how many shares you have and cost basis, but I'd see no reason to let go of this gold mine at this point. Enjoy your rewards for being positioned in probably the best shareholder friendly Oil company on the planet my guy. I'm not saying you should continue to DRIP at these prices, but the true fallout of all that has been done isn't even close to showing where we could go with XOM as a whole. Whats your YOC at this point? Is this holding in a tax deferred acct, roth, or brokerage?? Either way, congrats on your nice play...

Electronic_Bee3134

Fair enough, if I didn't have fractional shares enabled, then that would be a very different case. It's surprising though that there are still brokers that don't offer fractional shares on US equities. I have IBKR and Ally Invest, though the latter just acts as an augmented savings account for my Ally account (all in SGOV). Interactive Brokers offers fractional shares. Ally doesn't, so for Ally I specifically do have DRIP on to maximize my SGOV holdings.

bam2350

I like DRIP on -- my broker doesn't do fractional shares so I find it advantageous, particularly for things with high share prices such as VOO

A_Crafty_Platypus

I'm a 35M, and my total Vanguard overall investment portfolio currently sits quite equity-heavy with 76% in VTSAX, 17% in VTIAX, both in my taxable brokerage, and the remaining 7% in my 401K, invested in C975 Fidelity 500 Index Fund. This leaves me 100% in equities, with the US performance skewing my initial 70-30 approach I set a few years ago. I've currently turned off DRIP in my account, and am planning on using dividend dispersal from my accounts to fund slow diversification into VTAPX and possibly VBTLX with the intent to protect purchasing power, reduce early-retirement failure risk, and provide flexibility during market downturns. Does this sound like a good plan moving forward?

Snoo_67548

Just tell her you’re holding and will get it back. Any DRIP going on here? It will keep buying for you at the lower price.

Any_Jicama5208

Just holding FSKAX there already isn't the issue. Wash sale risk comes from a new buy or DRIP inside the window, not old shares just sitting there. I'd still turn off IRA auto-invest/DRIP if you want zero footguns.

markprice211

This is the main reason for my concern. I know reinvested dividends and, of course, forgotten auto-buys can trigger a wash - and recently discovered that if you trigger wash from TLH an asset in a taxable account and buying it in an IRA too soon you lose the ability to ever realize the loss, big yikes. Aside from the known concerns - DRIP & auto-buys - is there anything else I might be missing in terms of the small execution details you mentioned? Thanks!

Creative_Squash_1083

I'd just drip man. I do a very similar strategy as you, rebalancing as I inject capital every pay period. You're realistically just adding a lot of overhead and mental weight to the notion of more appropriately investing what amounts to cents in the long run. If you're getting dividends from things you don't believe in and wouldn't care to own more of, I think that might be a more pressing thing to think about. DRIP is what turns a handful of shares into several handfuls of shares.

pmotiveforce

I keep trying to time the bottom on oil and do a DRIP play, but chickening out. Today I said fuck it riding GUSH to valhalla, this retard has no idea what's going on and has no control over anything but bombing shit.

AskMeAboutETFs

DRIP on makes things simpler and keeps your money working immediately. DRIP off gives you more control to buy underweight funds instead of automatically adding to whatever paid the dividend. Since you’re already putting new money toward underweights monthly, leaving DRIP off fits your current style and helps you rebalance without selling. One thing to keep in mind is that in a taxable account, turning DRIP off might create more small tax lots to track, but that’s manageable. Either way, it’s more about what keeps you consistent than a right or wrong answer.

markprice211

Totally makes sense. I’m mostly on top of DRIP and auto-buys too. Just to confirm though, even if I accidentally trigger a wash sale by buying a share too early, I can wait 30+ days to sell that share and the original loss will then become allowable, correct?