Old School Value

Different Take on Reinvesting Dividends

With all the investment advice you hear from advisers, brokers and Wall Street regarding reinvesting dividends, they all seem to say the same thing. That is, reinvesting dividends is a good thing because there are no brokerage fees, it helps with compounding and you can purchase parts of a share. I am not saying that it is bad, but until recently I never looked at the flip side of reinvesting dividends even when the stock is overpriced.

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