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Author: Triniman Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Dividend Reinvestment Date: 8/13/1997 2:29 AM
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Thanks Pixy for the IRA advice that you gave to me earlier. I am about to tranfer my IRA to Discover Lombard which allows free dividend reinvestment in stocks. Which makes more sense with a F4 portfolio- reinvest dividends or place dividends in market sweep?
Triniman
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 177 of 75335
Subject: Re: Dividend Reinvestment Date: 8/16/1997 11:04 AM
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Yo, Triniman.

<<Thanks Pixy for the IRA advice that you gave to me earlier. I am about to tranfer my IRA to Discover Lombard which allows free dividend reinvestment in stocks. Which makes more sense with a F4 portfolio- reinvest dividends or place dividends in market sweep? >>

Each to his or her own, but given the opportunity this Fool prefers to reinvest the dividends at the time they are paid. That works to your advantage when the market for those shares is going up, but could be a disadvantage if it's declining. Despite the latter, over the long term I believe reinvesting will win out over a sweep account's returns.

Regards........Pixy

P.S. Sorry about the lateness of this reply. I was in the wilds of Missouri this week where they barely had phone service let alone net access. :-)


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Author: JeanDavid Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 213 of 75335
Subject: Re: Dividend Reinvestment Date: 8/23/1997 5:03 PM
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<I am about to tranfer my IRA to Discover Lombard which allows free dividend reinvestment in stocks. Which makes more sense with a F4 portfolio- reinvest dividends or place dividends in market sweep? >

I have no data to back this opinion up, but I would think it would make more sense to reinvest the dividends (iff you can do it for free) than to let them lie around in the broker's sweep fund. Afterall, if the principal can make your more money than a money-market fund, so can the dividends and interest. OTOH, if you must pay a commission to get the money reinvested, it is probably a loser to reinvest unless you are making thousands of dollars in dividends each quarter. In that case, congratulations.

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