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Three Out of Five Reinvest Their Dividend and Interest Income

Last month’s Asset Allocation Survey special question asked AAII members what they do with their dividend and interest income. Almost three out of five respondents (59%) said they either fully or partially reinvest the income. Some respondents said they set aside some of the cash for withdrawals, while reinvesting the remainder. About 23% use the dividend and interest income for living expenses and other expenditures.

Here is a sampling of the responses:

  • “After providing for my cash needs in retirement, I reinvest.”
  • “Reinvest manually so I can choose the stocks that are fairly valued.”
  • “Most are reinvested in whatever makes sense at the time—usually not the dividend payer.”
  • “Goes into my RMD (required minimum distribution) account for regular monthly payouts.”
  • “Spend in my taxable account as part of my retirement income and reinvest in the tax-protected accounts.”

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