What You Don't Know About Dividend Reinvesting Can Hurt You

For many individuals, reinvesting dividends may be among the most obvious and automatic rules for building wealth, and with good reason – it can be an easy way to get more shares of the funds or company stock you already own, often at a lower cost than buying new ones using your trading account. Whether you notice it or not, the dividends you're paid are often reinvested automatically for you, especially if you own mutual funds. These dividend payouts are an increasingly important part of the ...