Don’t Reinvest Your Dividends. Read This First

| December 12, 2022
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Alright, listen up.

I see dozens of people making a rookie investor mistake over and over again.

What’s the mistake I see being made?

Someone blindly reinvesting dividends. Sure it’s easy. Some brokerage accounts have a little check box.


You just check the box and go on your merry way, knowing you’ve done a smart thing.

While I applaud you for doing the smart thing and making sure your money is always working hard for you… you just made a mistake.  You blindly invested your money without considering the other options.

Look, is it the end of the world? NOPE.  Is there a better way? ABSOLUTELY.

The Secret To Reinvesting Dividends

Think about this…

Stocks go up and down every day. Business results change all the time.  When you think about buying a single dividend stock, you do your research.  You look at the chart, you check the ownership and debt structure. You measure the dividend and the yield. You study the financials and look at the cash flow numbers. You do your diligence.

Most importantly, you look at the valuation of the business and your expected returns.

Then you pull the trigger and invest a slug of money into your dividend stock of choice.

So, I see the question in your mind…

I just did all this research, why is it so bad to simply reinvest my dividends back into the same stock?

Find the answer at

Category: Dividend Stocks

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