DRIP - TFSA help needed

[Lephturn]

My main reason not to drip is to free up cash to hedge or re balance. I don't necessarily want to DRIP into all my dividend payers - I want to take all of the dividends and pool them to plow into the one that got hammered but still has solid dividends and good potential upside.

Also as I use options as well, it works better for me to use round 100's of shares and not little bits here and there.

[King Tut]

Companies don't payout all their earnings as dividends.

Do they use part of the earnings to invest in the company?

[King Tut]

http://www.rbc.com/investorrelations...nd_common.html

Thanks for the link, it is really neat and shows how the dividends have been growing over the years.

[as for the affordability part, I am working on that KT is good as gold]

[King Tut]

My main reason not to drip is to free up cash to hedge or re balance. I don't necessarily want to DRIP into all my dividend payers - I want to take all of the dividends and pool them to plow into the one that got hammered but still has solid dividends and good potential upside.

Also as I use options as well, it works better for me to use round 100's of shares and not little bits here and there.

Thanks for sharing your viewpoint, Lephturn. I am still exploring stock options, but until I have a better understanding of it, I'd rather stick with dripping for now. I read somewhere that wealth creation is boring! which is fine, I don't see myself at this stage being an active trader. I am looking to be a long term investor.

[Toronto.gal]

it is really neat and shows how the dividends have been growing over the years.

Unfortunately the share price hasn't; they were worth more in early 2010.
The good news however, is that you only need 100 shares to DRIP instead of 150.

To answer your earnings question, you might find below explanation & charts informative.

Net income (after taxes and expenses) is paid to shareholders and also put to use within the banks to do many things, including:

Upgrading technology
Training employees
Expanding and improving products and services
Expanding the capital base of the institutions so the stability of the system is maintained



Source:

http://www.cba.ca/en/media-room/50-b...rnings-profits

Ditto regarding boring wealth creation!

[Cal]

Do they use part of the earnings to invest in the company?

Exactly.

[King Tut]

To answer your earnings question, you might find below explanation & charts informative.

Quite informative. Thanks T.gal.