mathjak107
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 27, 2005
- Messages
- 6,210
My first thought on hearing the news of market drops: "Good. If the dip lasts more than 10 days, then my upcoming dividend reinvestments will buy more shares"
it is a wash . you will have the same account value pretty much before and after the reinvested money .
all compounding is on dollars at the ring of the opening bell over the next quarter , not number of shares . the auto adjustment in share price downward by the amount of the pay out pretty much is a wash when you reinvest .
if you don't reinvest then at the opening bell you have less dollars compounding .
you only benefit when buying more shares with new money since that increases the dollars compounding .
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