3J·

What to do with dividends when share prices fall?

Many investors ask themselves how they can best utilize dividends, especially when the ETF $VWRL (+1,78 %) is in the red. A clever strategy: use dividends to invest anti-cyclically.

Instead of stubbornly reinvesting everything, you could do as I did, for example:

"If my ETF is below the entry price, I'll buy more of the ETF."
"If the ETF is up, I'll invest the dividends in a more promising asset like Bitcoin $BTC (+0,99 %)."

In this way, you strengthen the cost-average effect in the ETF and give your dividends an extra chance of growth when market sentiment is strong, without immediately becoming too speculative.

Discipline beats timing - but with a well thought-out rule, you can combine the two.

How do you handle your dividends - do you reinvest them in the traditional way or do you also use them strategically?

Easter greetings from your Lord Vader!

#Investieren
#Finanzen
#Dividenden
#ETFStrategie
#LangfristigInvestieren
#CostAverage
#Vermögensaufbau
#Finanzbildung
#Aktien

5 Commentaires

Aktienmasseur@Aktienmasseur

And why not simply reinvest in the distributing position. The position would be deleveraged by the dividend.

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Darth Vader@TheRealDarthVader

@Aktienmasseur What do you mean exactly? I reinvest them, just when I am below my cost price...

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Enrique@Dividenden_Monteur

@TheRealDarthVader Ideally, however, you will not be below your purchase price for long.
In the last 1.5 years, you would have invested or reinvested almost nothing in the etf.

You simply use the cost average effect to always buy

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Darth Vader@TheRealDarthVader

@Dividenden_Monteur Ah yes, I can see that. It's about the phase at the beginning. But I think bitcoin will yield more in the long term, so I would probably buy that with my dividends in general. Savings plan runs on the Etf so the dca effect is already there anyway.

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Investanker@opportunity_seeker_138

I no longer have to think that way with ING. Distributions automatically become a buy order. Free of charge 👍.

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