I realize that we cannot time the stock market ebbs and flows but we can value a company within that market. In doing so, we have some idea when our wonderful company within our portfolio may become overvalued. So when it reaches that point and the stock company is ready to distribute a dividend, do you reinvest dividends or not? That is the question. Since, you already have a basket of stocks do you take the dividend and put it towards an undervalued stock in your portfolio? Do you reinvest the money into the same company regardless of its value? or do you take other actions with the dividend distribution. For me, I generally reinvest the dividend regardless of the company's stock value only because I do not have the time nor patience to watch my portfolio. So, for me its a 50/50 crap shoot of whether or not I'm getting the best value with DRIP. What does everyone else think about the DRIP?

Not sure if anyone else has seen the prices of dividend stocks going up. Two different thoughts on this. 1) Interest rates will be cut soon and people want to lock in a secure income stream. 2) The 2 year: 10 year treasury yield curve briefly uninverted and now it is a fraction of what the difference normally is. So then people are rushing to the safety of dividend stocks. Look at the rise in price of KO MCD and MO. Even VZ has seen a nice bump in price. Are people locking in a source of income or are they getting ready for a recession?