Should I delve in DG stocks?

[Be Here Now]

(02-26-2014, 08:45 AM)Star Wrote: 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.

What I do is probably unique to me but you may get some ideas from my mad method. As a retiree I spend part of my dividends and reinvest the remainder. It is my reinvestment method that might be unique.

I reinvest all C corp dividends and all equity REIT dividends into the same companies using my broker's automatic reinvestment capability.

I accumulate all mortgage REIT dividends, BDC dividends, and MLP distributions, and spend a portion. The rest I reinvest opportunistically into whatever I want to own and is a bargain at the time.