mathjak107
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 27, 2005
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- 6,210
Not really. Just think of a mutual fund . Your new cost basis is the reduced price plus the dividend. Each transaction through the year is the same thing .
reinvesting dividends do not really lower your cost basis.
Just think of having 10k in a stock. You get a 200 dollar dividend and reinvest it ,exchange rules have the stock open at an offset price.
If i bought 10k worth of stock at the open and missed the dividend i would have the same amount of shares and value as you who reinvested the dividend.
If the stock goes up 6% we are identical in value,and cost basis
reinvesting dividends do not really lower your cost basis.
Just think of having 10k in a stock. You get a 200 dollar dividend and reinvest it ,exchange rules have the stock open at an offset price.
If i bought 10k worth of stock at the open and missed the dividend i would have the same amount of shares and value as you who reinvested the dividend.
If the stock goes up 6% we are identical in value,and cost basis