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Re: Frugal pursuit

Submitted by slackerwealth on January 6, 2008 - 20:19.

"Most of my investing is for retirement and dividends are automatically reinvested. However, I would not mind a few extra dollars every six months or so."

If you don't need those extra dollars from dividends, it might be a good idea to reinvest them. It has a compounding effect which makes you have more dividends at the next payout. Without putting in any new money, as long as the dividend payout of whatever you're investing in does not go lower, you're getting a higher yield on your original money.

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