Quote:
Originally Posted by Stu from NYC
I have a different opinion on dividend distribution in taxable accounts. As you get them and reinvest you are also doing dollar averaging for the dividends. Better way to increase investments more efficiently.
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If dollar cost averaging is your goal, I think that setting up an automatic monthly transfer of a fixed amount (or percentage amount) from a cash account to a stock fund would work better. With a stock fund, you never know how much the dividends will be, and, sometimes, when they will come. And, they are not always based on the total value of the fund.