My Portfolio: [ Ссылка ]

One of the most common questions I receive from dividend investors is: what should I do with all of the dividends that get deposited into my brokerage account? The default answer would be to always let the dividends automatically reinvest back into buying more shares, or dripping as it’s called. The default setting for likely every brokerage platform that exists is to automatically reinvest back into the investment that’s paying a distribution. But you can also choose to not automatically reinvest and instead have them placed in some kind of depository like a money market fund.

So people often ask if there’s some kind of strategy that should be used instead of always reinvesting your dividends. While you can simply reinvest all of your dividends, there can be something better that you can do with them. Right off the bat, there’s nothing wrong with always reinvesting. It’s the easiest option that doesn’t require any additional work. It’s never a losing strategy to just let everything DRIP. But there are some slightly more efficient things you can do at times with your dividends.

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