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I'm a new fool and recently setup my broker accounts and begun a portfolio of dividend paying stocks. I have elected to reinvest dividends, but is it better to have them put into the sweep account for possible use in other investments?

I think different Fools do different things here. What I myself do is let the dividends accrue to the sweep account, and then when I decide to make my next purchase, I add in the amount of money that has been paid into the account by dividends.

The reason is that I can't say that the date on which company X pays their dividend will be a good time to put more money into that company. So, I let the money sit until I determine that putting money into company Y is a good thing -- and then I include that money in the purchase amount for company Y.

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