04-02-2014, 08:48 AM
Hey guys,
I am currently invested in a few companies. I am looking at building a core for my portfolio.
I like using a platform to reinvest dividends automatically (although they take 1% commission).
The problem I am facing is with high cost stocks. Currently I plan to get some JNJ or PG in there, I want to invest around $5000 between them. When the dividends are paid they cannot be reinvested into fractions of shares, I can only invest if I have a full amount (JNJ around $97).
This means I will not benefit from compounding.
Any ideas on how to get around this?
Thanks
I am currently invested in a few companies. I am looking at building a core for my portfolio.
I like using a platform to reinvest dividends automatically (although they take 1% commission).
The problem I am facing is with high cost stocks. Currently I plan to get some JNJ or PG in there, I want to invest around $5000 between them. When the dividends are paid they cannot be reinvested into fractions of shares, I can only invest if I have a full amount (JNJ around $97).
This means I will not benefit from compounding.
Any ideas on how to get around this?
Thanks