1 Big Change I'm Making to My Investment Strategy in 2021
I've been investing in the stock market since college. I'm almost 40 now. There have been many parts of my investment strategy that have served me very well along the way. One of them is enrolling every stock I own in a dividend reinvestment plan, or DRIP.
In a nutshell, a DRIP allows my dividends to be automatically invested in new shares of the same stock. The entire dividend is invested. For example, if Apple (NASDAQ: AAPL) trades for $130 per share and my Apple position pays me a $50 dividend, it would be immediately used to add about 0.38 shares of Apple stock to my investment.
However, some of the biggest reasons to use a DRIP to automatically reinvest my dividends no longer apply. So, in 2021, I've decided to opt out of dividend reinvestment for the first time in more than 15 years. Here are my reasons.
Source Fool.com
