To make it easier, ignore brokering and the small parcel size. Say I want to buy $100 worth of shares in a stock which costs $1.00 and they are going to pay a $0.10 dividend. If I buy before the stock goes ex-dividend then I will get a $10.00 dividend - but the stock should drop by $0.10 as you now don't get the dividend. If I take that $10 (as a dividend or part of a DRP) and buy more stock I would now have: 100 units bought @ $1.00 worth $90.00 11 units bought @ $0.90 worth $9.90 $99.90 investment (plus $0.10 cash ) If I had waited till the ex-dividend date then I would have: 111 units bought @ $0.90 worth $99.0 $99.90 investment (plus $0.10 cash ) So up until this point it makes no difference. However I'm going to get taxed on the dividend right? So at the end of the financial year I'm going to be taxed at what ever rate on the $10. Anyway to the point of this post: If I'm thinking about buying some shares and the dividend date is coming up soon and I'm confident the price isn't going to move to much (apart from the ex-div reset) then I should way and invest after the dividend date?