02-26-2014, 08:45 AM
So what do you guys do with regards to reinvesting dividends. There is a trade off, situation 1) reinvest dividend automatically, buy at any price + compounding advantage. Situation 2) Collect all dividends over a period of time (quarterly? yearly?) & invest them elsewhere or same stock when the prices are low, here we lose compound time.
This is my current dilemma, my platform takes 1% of dividends which are automatically reinvested by them. On the other hand I am in a tax wrapper so no dividends are taxed at source.
This is my current dilemma, my platform takes 1% of dividends which are automatically reinvested by them. On the other hand I am in a tax wrapper so no dividends are taxed at source.