07-06-2015, 07:19 AM
I'm relatively new to DGI, but I plan to employ a similar strategy. If I think a company is fairly/under valued I will reinvest the dividends back into the same company. If I think a company is *significantly* overvalued I will accumulate the dividends and reinvest them into different undervalued companies. Right now, all companies I own are DRIPing.
I'm not sure how well the unrealized gain/loss strategy will work over the long term. After 10 years, most of your positions should hopefully have unrealized gains.
I'm not sure how well the unrealized gain/loss strategy will work over the long term. After 10 years, most of your positions should hopefully have unrealized gains.