RE:Dividends when to reinvestment and when to take cashFirst off you will need to determine your expected rate of return on any capital invested. This assumes you have alternate options to invest your capital for a potentially higher rate of return.
When (anticipated share price growth + dividend rate) < expected/alternate rate of return, then you stop reinvesting.
As you don't know what the share price will be, and you don't know what the dividend will be for the next 7 years, you'll just need to calculate it at every dividend payout.
Good luck!
jdmecomber wrote: Let's say I stay invested in Baytex for the next 7 years and they pay dividends for the next 6.5. When does the share price get so high where it's not worth the reinvestment and just take the cash.