Quote:
Originally Posted by campimp
i day traded for about 10 years, the last few years i switched more to buy and hold investing in high dividend paying stocks and setting up up portfolio for dividend reinvestment.
|
I agree with the principle of investing in companies with good dividend and record of increasing their dividend but...... overall im not sure about dividend reinvestment.
There's no tax advantage and the dividends are automatically reinvested so youre not able to time your entry on the new purchase. You may aswell collect the cash and then wait for a sell off - plus you have the added advantage of being able to choose what you want to invest the cash into.