Pooling Dividends Vs. Automatic Reinvesting: Which Is Right For You?

When you look at the stocks sitting there in your portfolio, do you think: (1) I need to diversify more, (2) I need to own higher quality companies, (3) I need higher current income, and/or (4) I need to own companies that have better earnings per share growth rates. If those thoughts dominate when you size up your portfolio, it probably makes sense to pool your dividends together and make opportunistic investments that can alleviate that concern.

Want something higher-quality? Take your dividends and add some Procter & Gamble, Johnson & Johnson, or Coca-Cola to your portfolio.

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