Investors can be placed into two categories: those who prefer to receive dividends and those who do not.  Proponents of dividends claim that they are a sign of corporate health and provide shareholders with a relatively stable form of cash value.  Opponents of dividends claim that they create uncontrollable taxable events as well as potentially force investors to incur reinvestment costs. 
Typically, companies have chosen to satisfy the preferences of the proponents of dividends by forcing all shareholders to pay dividend taxes, incur reinvestment transaction costs and to invest sub-optimally.  Companies do buy back their shares but this occurs relatively infrequently and generally cannot be predicted by the shareholders. 
Accordingly, the inventor herein has recognized a need for an improved system and method for allocating dividends to a common block of shares that minimizes and/or eliminates the above-mentioned inefficiencies.