The gentleman at Dividend Mantra wrote a great educational peice about different strategies and philosophies of dividend growth investing. If you haven't read it yet, I encourage you to check it out:
http://www.dividendmantra.com/2014/03/se...t-vs-drip/
Anyway, it really got my gears turning as I'm in the process of establishing a dividend portfolio. I would appreciate your suggestions and recommendations.
What do you do with your dividends you receive? Do you DRIP or do you take the cash and allocate it towards new/existing positions...and why?
Are there tax implications if you automatically reinvest the dividend income in the company or DRIP? I'm aware you would pay taxes on any dividend you draw on from your account, however if you elect to receive the cash dividend and reallocate to another stock do you pay taxes on the dividend income?
I've read that a big negative to DGI is cost basis tracking for tax purposes. Is this really a big deal anymore since online brokers have become so popular. Don't they automatically keep track and record this for you?
I'm sure more questions will come up, but this are the big unknowns I have so far about DGI. I would appreciate any incite you can offer.
Cheers
~Rick
http://www.dividendmantra.com/2014/03/se...t-vs-drip/
Anyway, it really got my gears turning as I'm in the process of establishing a dividend portfolio. I would appreciate your suggestions and recommendations.
What do you do with your dividends you receive? Do you DRIP or do you take the cash and allocate it towards new/existing positions...and why?
Are there tax implications if you automatically reinvest the dividend income in the company or DRIP? I'm aware you would pay taxes on any dividend you draw on from your account, however if you elect to receive the cash dividend and reallocate to another stock do you pay taxes on the dividend income?
I've read that a big negative to DGI is cost basis tracking for tax purposes. Is this really a big deal anymore since online brokers have become so popular. Don't they automatically keep track and record this for you?
I'm sure more questions will come up, but this are the big unknowns I have so far about DGI. I would appreciate any incite you can offer.
Cheers
~Rick