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Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 6725  
Subject: Re: dividends Date: 11/20/2012 2:06 PM
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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
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