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Thread: How Are Dividends Applied ?

  1. #1

    Default 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 !

    "Too old to rock and roll...too young to die"... - I. Anderson

  3. #2

    Join Date
    Sep 2006
    Upstate NY
    Blog Entries

    Default Re: How Are Dividends Applied ?

    Quote Originally Posted by Stoplight View Post
    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.



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