DRIP vs NOn-DRIP and Tax implications

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For the United States:

Quote:Taxation
Another misconception about DRIPs is that they are not subject to tax because the investor is not receiving a cash dividend per se. In fact, while DRIPs are beneficial for their cost-effective approach to investing, they are still subject to tax. Because there was an actual cash dividend, although reinvested, it is considered to be income and thus taxable. And, as with any stock, capital gains from shares held in a DRIP are not calculated and taxed until the stock is finally sold, usually several years down the road. (For more, check out Capital Gains Tax 101.)

Read more: The Perks Of Dividend Reinvestment Plans http://www.investopedia.com/articles/02/...z3r0AQurAl
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