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Old 02-14-2023, 02:57 PM
JackB JackB is offline
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Default Automatic dividend reinvestment
It is usually good to have dividends reinvested over the years but it has been a while so looking for some updated opinions. Formerly, in a taxable account, auto dividend reinvestment in individual stocks could be a pain because each reinvestment created a separate cost basis and if a portion of the stock holding was sold down the road one needed to account for each reinvestment cost which could be a pain. Lots of folks especially did this with utility stocks due to the high dividends. Would be interested in any comments on doing auto reinvestments of dividends currently relative to any changes over the years. Do brokerage firms keep better track now and provide records to help at tax time, any tax law changes made etc. ?
Last edited by JackB; 02-14-2023 at 09:51 PM.