I have some investments in Vanguard ASX 300 fund (VAS.ASX) which regularly pays out dividends, which I have set to automatically reinvest.
But because it pays dividends I have to pay tax on it.
I am in a fairly high tax bracket and looking for a fund that does not pay out...
If I have 100 shares in a company that pays dividends and the date comes when they payout dividends and I choose to re-invest those dividends instead of having them paid out to me, would they be re-invested at the current stock price?
I'm new to investing and have been buying small packets across various stock just to get my feet wet. I thought automatically reinvesting the dividends would be the wise thing to do but was shocked when I received my accountants bill.
They explained that reinvesting adds a lot more...