I have read what seems a lot of opinions on dividend handling, many of which apply to younger folks still working, or older folks retired at a more traditional age. I'm 50, been ER for a few years, and have a pretty typical 60% stock/40% bond portfolio held at VG, with about 10% in individual stocks. The taxable portion of the VG mix along with individual stocks, results in about $22k in annual payments, all of which is rolled back into buying more shares of the particular investment. FWIW, my annual spending is about 2% of the portfolio.
I kind of like the idea of simply having the dividend payment deposited into an account, where I can decide later where to invest, or for use with daily expenses, not to mention perhaps easier accounting... But also like the idea of continuing to basically dollar cost average into the investment vehicle, since I am only 50. I also wonder about tax impact, with either choice? Appreciate your insights and help. Thanks.,