11-09-2015, 02:25 AM
I don't know if it's the same for you, but for me, if I get dividend, than I pay 15% tax. This means that if I get 100 dollar in dividend, than I only get 85 net as you know. If I use DRIP, than I get 100 dollar in stocks. This saves me the tax (although we get the tax back later, so not a big saving for me, but that's different in most countries).
Because of this I can imagine DRIP'ing is better. But it depends on your tax situation.
Because of this I can imagine DRIP'ing is better. But it depends on your tax situation.