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Do you want the dividends reinvested in the stock that generated the dividends? If you do, dividend reinvestment is often free. Unless you have a significant investment in a stock, the brokerage fee to buy additional stock would be a large percentage the dividends received. You need to be organized and keep statements of the purchases.

If you want to diversify, collect the dividends to make the purchase.

At least for my broker, reinvestment is selected on a per stock basis, and not on the entire account.
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