Investing Insights

This Dividend Investing Strategy Deserves a Second Look


Listen Later

Amy Arnott, portfolio strategist for Morningstar Inc., discusses how a popular dividend investing strategy works, and who would or wouldn’t benefit from it.

 

On this episode:

  • Let’s focus on when dividend reinvesting works as a strategy and when it does not. Who should consider reinvesting dividends?
  • When shouldn’t an investor reinvest their dividends?
  • Are there any differences between reinvesting dividends in a taxable vs a tax-deferred account?
  • What types of dividends are taxable and non-taxable?
  • How long you’ve owned a dividend-paying stock matters when it comes to taxes. Can you explain the differences between qualified and non-qualified dividends?
  • What kind of record-keeping does reinvesting dividends require, and how does reinvestment affect the cost-basis?
  • How are considerations different for stock dividends vs fund dividends?
  • What’s the final takeaway for the audience about dividend reinvestment?

 

 

Read about topics from this episode. 

When to Reinvest Dividends (or Not)

These 4 Dividend ETFs Strike the Right Balance for Income Investors

10 Top Dividend Stocks for 2025

13 Elite Companies With Fast-Growing Dividends

What Are Dividends?

The 10 Best Dividend Stocks

The Best Dividend Funds

What Makes a Great Dividend Fund?

 

What to watch from Morningstar. 
Market Volatility: Is Your Investment Portfolio Ready for a US-EU Trade Deal?

Market Volatility: 4 Key Factors to Track in Q3 2025

Is the International Outlook Brighter Than the US?

Digital Advice in 2025: What You Need to Know About Robo-Advisors

 

Read what our team is writing:

Amy C. Arnott

Ivanna Hampton

 

Follow us on social media.

Facebook: https://www.facebook.com/MorningstarInc/

X: https://x.com/MorningstarInc

Instagram: https://www.instagram.com/morningstar... 

LinkedIn: https://www.linkedin.com/company/5161/

...more
View all episodesView all episodes
Download on the App Store

Investing InsightsBy Morningstar

  • 4.1
  • 4.1
  • 4.1
  • 4.1
  • 4.1

4.1

469 ratings


More shows like Investing Insights

View all
Motley Fool Money by The Motley Fool

Motley Fool Money

3,178 Listeners

Rule Breaker Investing by The Motley Fool

Rule Breaker Investing

938 Listeners

Zacks Market Edge by Zacks Investment Research

Zacks Market Edge

295 Listeners

Wall Street Breakfast by Seeking Alpha

Wall Street Breakfast

1,016 Listeners

Schwab Market Update Audio by Charles Schwab

Schwab Market Update Audio

325 Listeners

Bogleheads On Investing Podcast by bogleheads

Bogleheads On Investing Podcast

580 Listeners

The Long View by Morningstar

The Long View

877 Listeners

Thoughts on the Market by Morgan Stanley

Thoughts on the Market

1,276 Listeners

Simple, but Not Easy by Morningstar

Simple, but Not Easy

82 Listeners

Barron's Streetwise by Barron's

Barron's Streetwise

1,543 Listeners

Barron's Advisor by Barron's Advisor

Barron's Advisor

108 Listeners

Barron's Live by Barron's Live

Barron's Live

198 Listeners

Investing Experts by Seeking Alpha

Investing Experts

57 Listeners

Big Picture In Practice by Morningstar, Ben Johnson, Julie Willoughby

Big Picture In Practice

11 Listeners

On Investing by Charles Schwab

On Investing

284 Listeners

The Morning Filter by Morningstar

The Morning Filter

28 Listeners