Top 5 Risks of Reinvesting Dividends

1.      Increases the position’s concentration in your portfolio

2.      If the investment declines you suffer greater losses

3.      Unless the investment increases there is little to no benefit for the reinvestment

4.      The dividends are treated as income

5.      You have tax liability on the dividend reinvestment even if the investment declines

Gilman Law LLP’s Naples Florida Office is a leading securities law firm helping local investors in Naples, Bonita Springs, Fort Myers, Cape Coral, and Marco Island recover for market losses. For a free evaluation of your case, call us to set up an appointment in our office (1-239-221-8401).