Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #21  
Old 15.06.2017, 12:07
Meadow's Avatar
Senior Member
 
Join Date: Jul 2016
Location: Zurich
Posts: 272
Groaned at 6 Times in 5 Posts
Thanked 95 Times in 63 Posts
Meadow has no particular reputation at present
Re: Bank with option to trade stocks?

Quote:
View Post
Also, does someone have stocks in funds that pay dividends every month? The compounding is much better the more often the companies pay dividends
Let somebody correct me if I'm wrong, but I think this statement is completely false. The best compouding is when the company pays no dividend at all, because then it is automatic. When there is a dividend, there is tax to pay, and you also have to pay to reinvest the dividend.

Are you sure you understand the concept of dividend? Dividend is money that flows out of the company and lowers its value and the share price. So yes, if a company pays a lot of dividend and you reinvest, you will have more shares of this company, but the total value will not be higher. Makes sense?
Reply With Quote
The following 2 users would like to thank Meadow for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Renouncing U.S. citizenship - What to do with IRA / stocks? ElJeFe Finance/banking/taxation 16 27.12.2016 21:56
Advice on best bank to bank with from Canada/UK LAP5150 Finance/banking/taxation 2 16.07.2016 11:30
Swiss National Bank agrees to currency swap with People's Bank of China 3Wishes Finance/banking/taxation 3 21.07.2014 22:07
Nice option to freeze account with UPC Cablecom (rather than canceling) Pain_sans_chocolat TV/internet/telephone 0 17.08.2012 10:50


All times are GMT +2. The time now is 20:32.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0