First EVER dividend payment

Freetrade Chat šŸ”„
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I received my first ever dividend payment of 86p this month - let the good times roll.

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Your snowball just got a bit bigger :boom:
Keep it rolling ! :comet:

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Hell Yeah!

Iā€™ve recorded my upcoming dividend payment dates in an Excel workbook and look forward to watching the compounding effect unfold as I reinvest that money back into my portfolio.

Iā€™ve really been quite absorbed in all this since joining FT back in April. Most of us have work pensions which essentially trade in S&S on our behalf. Itā€™s a passive exercise which, Iā€™m sure, the majority of us donā€™t ever really give much thought to. Discovering the FT app has breathed life into the whole experience by allowing me to cost-effectively steer my own ship :metal:

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Its about taking control. My first dividend payment was Ā£1.19 started small but growing!

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Well done mate, sky is literally the limit from here :slight_smile:

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How do you find out when you recieve a dividend payment

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Youā€™ll receive a message in app when you get it

Use google to find out when itā€™s due

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But please bear in mind that itā€™ll take a little while longer than Google says to receive the dividend payment.

Hereā€™s how that works for UK & US dividends.

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I was really happy to receive my first dividend the other day too :slight_smile:

Though of course itā€™s cash, not accumulation. I would much prefer to re-invest that dividend into more shares to grow the portfolio value. I assume accumulation is not offered as partial shares are not yet supported?

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Accumulation would be something offered by the ETF and happens independent of the broker.
For a distributing ETF, automatic reinvestment would be a platform feature called DRIP.

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Ah, thanks.

I got a dividend on a stock, so I assume thereā€™s no way to re-invest that. It was 60p on a Ā£100 share, so pretty hard to re-invest that :slight_smile:

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Correct. Youā€™ll just have to wait until you have enough dividends to buy a whole share. Thatā€™s the disadvantage of high yield dividend stocks if you canā€™t buy fractionals and donā€™t need the income.

It would be better to have a high growth, low or zero dividend stock. This way you get your ā€œcompoundingā€ for free automatically (the company is reinvesting profits it to itself to be able to create even more profits in the future), instead of cash sitting in your account earning 0%.

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60p can buy you one Lloyds share - that money doesnā€™t need to sit idle in your account! :smile:

Yield is 5.48%.

(this is not a recommendation to buy of course - DYOR)

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Yeah, you donā€™t necessarily need to reinvest it in the same stock to get compounding effect

It does make it easier if you have a large enough number of shares that the dividends will buy at least one share in something

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So, now after three months of investing, Iā€™m already starting to receive decent dividend payments (IMO).

One thing is clear to me - the amount of dividends Iā€™ve accumulated far exceeds the interest I would have earned from leaving the same amount of money in a bank account or regular ISA. Itā€™s a really good feeling, re-investing money earned from dividends back into my portfolio.

Itā€™s early days, of course, and Iā€™ve mentally prepared myself for the highs and lows (Iā€™m in it for the long haul) but, so far, Iā€™m very happy with my investments and the FT app :ok_hand:

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