Is there a tax advantage to a DRIP as opposed to buying more shares with the cash received in dividends?

Question

I have generally holding onto cash from dividends to buy on the price dips.

Answer 1

No tax advantage - just convenient because it's automatic, and sometimes there aren't fees or they are less than just purchasing shares.

Answer 2

There usually is a discount of up to 5% offered as an incentive to participate in the DRIP. If you own the shares through your IRA, don't worry about the tax issue.