This is a crucial point. Given I am in the accumulation phase of my life I also reinvest my dividends but I don’t invest in individual stocks but index ETF’s. I still get the benefit of compounding dividend returns but also get diversification for a minimal cost (a few basis points).

Economic policy wonk by day. Personal finance writer by night. I write about investing, debt, and all things related to money. Editor of Making of a Millionaire

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store