Should I Reinvest Dividends & Capital Gains?

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If your goal is to grow your assets, it would likely be best to reinvest the dividends and capital gains. It’s a great way to increase your position in the investment without paying commissions. Those shares will then later pay you additional dividends, thus compounding your returns in the investment.

If your goal is to withdraw money from your accounts, it would likely be best to have the dividends and capital gains paid into your account as cash.

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