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DRIP - reinvest dividends or deposit as cash?

Posted: Fri Jul 06, 2012 3:08 pm
by runnergirl
For restricted stock awards, do you recommend having dividends reinvested in the company stock or taking the cash?

Re: DRIP - reinvest dividends or deposit as cash?

Posted: Fri Jul 06, 2012 3:44 pm
by SSSS
Investing in your own company's stock only makes sense if you get a nice discount, and you should generally sell it as soon as you're allowed to do so. Reinvesting dividends (presumably) doesn't get you a nice discount, so why would you do it? Also, dividend reinvestment in a taxable account can create many small tax lots, which can make your life more complicated later.

Re: DRIP - reinvest dividends or deposit as cash?

Posted: Fri Jul 06, 2012 8:46 pm
by runnergirl
The dividends are for unvested stock so I did not pay for them. I typically sell as soon as they are vested.