How Are Dividends Applied ?
Hello All....
With this crazy market, I've been trying to figure out what to do with my TSP balance (like all of us !)
There is so much good advice here, and I thank you all for that !
BUT....I'm not a current Fed, so I can't use a contribution/match DCA into any particular account....I have to work with a fixed TSP account balance.
I like Birch's bullish approach, BUT I notice he's relying on individual stock dividends to carry him through these tough times...I'm not working with individual stock dividends, but it raised the question in my mind : How do the TSP index funds handle individual stock dividends ? My wife's 403(b) account credits the dividends as a separate line item on her statement...Sorry if this another stupid question :)
Anybody care to comment ? Thanks !
Stoplight....
Re: How Are Dividends Applied ?
Quote:
Originally Posted by
Stoplight
How do the TSP index funds handle individual stock dividends
It's already incorporated into the daily NAV. With a universe almost 500 stocks in C Fund alone, dividend hits are pinging every day. You're not going to get a payout into the G fund every time a dividend is paid. I know it sounds cool to get that actual cash payment, but the method of automatically reinvesting the dividend is better in the long run.