Dividends and new investor help!

Hey Shelby, nice job getting started!

I personally prefer to just get dividends paid into my bank account and then use those funds towards the next purchase.

Reasons:

1- It lets you choose exactly where all your money is going at any one time. You might choose to invest in one over another if markets change or you change your mind. So not setting up a DRP plan makes it easier later.

2- It doesn’t create additional purchases, which makes taxes easier later if you go to sell. When there are more transactions, it becomes harder to work out your Capital gains tax later (which will be more costly for an accountant, or a nightmare if you do it yourself). This isn’t so bad if you use a portfolio tracking tool like Sharesight or Navexa.

3- I also like the positive reinforcement seeing the payments hit the bank account. It makes investing feel more real and I find it motivating to see real cash coming in like a paycheck. People argue it doesn’t matter if it’s in your bank or in your portfolio, but I disagree.

Hope that helps.