Change from D.R.I.P. to Receiving Income

[nathan91]

I have been investing in D.R.I.P. types for years and years - mostly in things like utilities. They have been good - But now I am up in age and feel that perhaps I could use this money as income instead of buying more shares.

I have never really thought about the logistics of this sort of swiitch.

1. is the rate of payment the same whether getting paid or buying more shares under the dividend reinvestment program?
2. taxes, I am assuming, will be the same as they are now - whether getting dividends by check or reinvesting - still pay taxes just like now.
3. any downside that I am not seeing - other than not adding to my share numbers.
4. Guess I just have to inform the company(ies) of the change,
   
5. How easy would it be to switch back to the D.R.I.P. rather than income received?

TIA

 

[slow]

@nathan91

1. No? It’s through your broker, if that’s what you mean then yes.

 

[nathan91]

@slow Thanks - The company has a brokerage service that handles the transactions and changes. So that’s what I meant.

 

[robinah]

@nathan91 You may evaluate your concentrate risk, too.

 

[heart_for_christ]

@nathan91 I literally just did the same

 

[nathan91]

@heart_for_christ Since mine is mostly in utilities, it is nice to know that the utility company will be paying the lion’s share (maybe more) of the utilities they are billing me for -

And the actual shares stay for the next generation to build off of if they want.

Saving this money threw the years was nothing - sometimes I did a little, other times I did more - never too much at any one time.

 

[heart_for_christ]

@nathan91 I think I’m going to buy some GLAD for some monthly dividends, might even buy some O as well in my brokerage for even more monthly dividends.