03-17-2013, 08:55 PM
At the moment, I am automatically reinvesting all of my dividends back into the stocks that pay them. I don't have religion on this subject -- I think there are good arguments for both approaches. I find this simpler, and I am comfortable buying more of all of my stocks at current prices. Moreover, I hope that one day my DG portfolio is much larger than it is now and that my current positions are only a fraction of what they will be one day. So while I may look overweight, say, JNJ, I am still happy to be buying a lot more. What is today 12 percent of my portfolio will one day be 5 percent of a much larger one.