|
The Motley Fool Discussion Boards
|
Previous Page | |
|
Learning to Invest / Portfolio Management |
||
|
URL:
http://boards.fool.com/its-a-matter-of-personal-preference-the-primary-30391951.aspx
|
||
| Subject: Re: dividends | Date: 11/20/2012 2:06 PM | |
| Author: CABob | Number: 6654 of 6671 | |
|
It's a matter of personal preference. The primary reason to reinvest dividends is to "painlessly" grow your investment in a company. OTOH I think the following considerations point out some downsides to dividend reinvestment. In a taxable account it creates a number of purchase lots which may make for a more complex tax return when you sell some or all of an investment. Putting the dividends into a sweep account allows you to make your purchase to whatever investment and at whenever time you choose rather than being tied to a specific stock on the dividend date. Bob |
||
| Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us | ||