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Reinvesting dividends?
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Hatone
Posts: 71 Forumite
How many of you here reinvest your dividend within an individual company?
I've always taken a dividend as another form of income. I know some investors argue reinvesting dividends is a great wealth builder, especially as you pay very little commission (including stamp duty) to buy more shares within a company. But I hear this screws up your capital gains tax allowance when you sell the shares.
I'm thinking of doing this, just curious to know if anyone here has taken up this policy?
I've always taken a dividend as another form of income. I know some investors argue reinvesting dividends is a great wealth builder, especially as you pay very little commission (including stamp duty) to buy more shares within a company. But I hear this screws up your capital gains tax allowance when you sell the shares.
I'm thinking of doing this, just curious to know if anyone here has taken up this policy?
0
Comments
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It doesn't screw it up, it just makes it more complicated. You have to keep very good records.0
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