Hi Guys, I am new to stock market. And I just received a quite big sum of dividend from AirAsia (although losing money in the capital investment). At the same times, I am also getting some smaller dividends from REITS.

Wonder what do you guys do with those dividend you received?

Reinvest or buy new iPhone?

Thanks~

Reinvest is the way to compound benefit.

Hahaha...If I don't need it I would not be asking right? I could have just donated it.

Asking means I do care about the $$ and want to see how to grow more...

Seems like our thinking logics are very diff

This post has been edited by PHI_1.618: Aug 30 2019, 02:51 PM

reinvest.

Analyse your current situation.

1.You got your dividend but unsure what to do about it.

Shouldn't you have a game plan before you bought Airasia?
But since you are here now, best you set the money aside first. Not doing anything is always a good strategy.

Really need to study more while you wait. Not just the stock but market strategy, game plan and most important your risk management.

Wait and find a better way to reinvest your money.

2. You got your dividend but you are actually losing money.

Yeah, the wrong perspective is to think Belum Jual Belum Rugi. Your current losses are real. You need to learn from this mistake.... ie never simply chase a stock for its dividends.

Thanks for the great advice.

I bought AA was for slightly longer term investment, cause I do see they are going through some transformation and kind of like what they put in their annual report. And I also notice their dividend yield is slightly better. I didn't know about the 90cents dividend before I bought it. So I am not actually chasing for its dividend.

In fact, I was a bit caught in surprise with the dividend amount I received, hence I am not sure whether to reinvest into another share or keep it aside first. Maybe I will keep it aside and find another share to invest later...

Their annual report is so complex.... Here pusing there pusing.

The dividend is not derived from their daily operations, hence the market is pricing it much lower, they know the dividends cannot be sustained....

If this was supposed to be an investment, you need to keep yourself updated....

And the latest earnings report is so poor.....

I dump into the brokerage account for reinvestment. It may or may not go back to the same stock tho..

Your choice. Keep it, reinvest (not necessarily use it to buy same stock), spend it.

Well u can spend some & balance reinvest...
The percentage depending on u...

Once awhile needed to enjoy the $$ too... But not all of it..

if spend them, how to compound??

Keep in bank earn interest while waiting for new dividend stock opportunities. Same time enjoy some nice Makan with the money lol

spend about 10% to 20%, reinvest the rest.

if you don't spend and just invest, suddenly the stocks go down, then you'll feel like you've earned nothing!!

seeing all the advices, I think the good option is to spend like 10%-20% and keep the rest for future reinvestment.

Sorry but I strongly disagree.

1. You got some money back from an investment gone bad. Do you think it is wise to spend even 10% of it?

2. This was the money you had orinially allotted for your investment. Hence, it should remain allotted for your investments...

Anyway just my 3 sen.

Your money.

Ok guys...I will have to spend the dividend...no choice. Reason being... my TV just gave up on me!!!! Like 2 mins before i post this comment!!

Damn....

Do this over long term

Lolz..
I know the situation..
Because I faced before..
Have unexpected expenses upon receiving dividends $$...

Hahaha...good idea. Can try that if I get another big dividend...

Ya man...what a pity. Damnnnn...

A long time ago, my sifu taught me that:

"Before you embark on stock market trading, you must first have at least 6 months emergency funds"

* Sifus deep voice.. 😆

This post has been edited by Cubalagi: Sep 1 2019, 11:54 PM