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Lump sum Vs cost averaging - Dividend stocks

Lump sum Vs cost averaging - Dividend stocks

  • Lump Sum

    Votes: 0 0.0%
  • Cost average

    Votes: 0 0.0%
  • A mix?

    Votes: 2 100.0%

  • Total voters


Rookie Investor
Apr 3, 2021
I've read that long term there is no real huge difference between either ways of investing as a end result.

But if you were to come into a sum of money, would you lump sum or cost average?

On one hand lump sum allows you to almost lock in future dividend income from stocks but its harder to average down if the stock price drops.
Alternative we could cost average, allowing to potentially lower the average cost (also the opposite is possible) but the negative is that you may potentially miss out on some dividends while waiting.

Thought this question would be interesting in terms of dividend stocks as you can use the dividends collected to also average down, though its not part of the strategy of the original sum of money.