Hi Dale,

Do you believe that reinvesting dividends buys more shares and increases your payout?

If so, then how are CGs different?

For example, in May I bought the VG Managed payout distribution focus fund.  It pays 7%.

The first month my payout was exactly 7% of the money I put in divided by 12.  The second month my payout increased by 7% of the original payout divided by 12.  This month it will increase by 7% divided by 12 again.

Those payouts include interest, CGs, and perhaps some capital.  But it still increases my number of shares and my payout by exactly 7% divided by 12 each month.

This will continue forever as long as they meet their goal of producing a 7% yearly return and as long as I keep reinvesting it all.