Dividend reinvestment is important to long-term investors because it can grow an investment's
value faster than if dividends are not reinvested, or only partially reinvested. A dividend
reinvestment plan (or DRIP) automatically takes the dividends you earn and reinvests them in the
stock. The true beauty of dividend reinvestment lies within the compounding returns they can
provide -- a relatively small amount of shares can grow into a very large amount over the long
term, even without future purchases.
Since ShareOwner enables you to purchase fractional shares (to four decimals), it means that
every penny in dividends is automatically reinvested for you to purchase additional shares of
the company. These additional shares produce dividends, too. By allowing the dividends to be
reinvested, you tap into the power of compounding growth without ever having to think about it.
DRIPs are also a perfect way to implement a dollar cost averaging strategy, either alone or in
combination with an ongoing scheduled purchase plan, by investing a specific amount of money
regularly over time. With ShareOwner it is made easy for you because we automatically reinvest
your dividends, purchasing shares on a regular basis regardless of current market conditions or
share price.
|
ShareOwner is the only investment dealer in Canada that provides automatic dividend
reinvestment with no commission for all dividend-paying stocks and exchange-traded
funds currently available through the Portfolio
Building Service. Other brokers only reinvest a stock’s dividends
if requested, and then, only if the dividends are large enough to purchase whole
shares.
|
| |
DRIP
Benefits
With ShareOwner’s dividend reinvestment program, you have many
things working for you:
the power of compounding returns quarter over quarter
dollar cost averaging because you end
up buying shares in bad markets and good markets
make every penny work for you with
fractional shares
cost effective investing with no
commissions charged on dividend reinvestment trades
access to more than 500 well-regarded
Canadian and US stocks and ETFs so you don’t have to sacrifice
on portfolio quality
and hassle-free reinvestment because
everything is on auto-pilot
|
|
Overall, a dividend reinvestment program can provide investors with numerous benefits
and
can be helpful for boosting your investment portfolio and helping you build wealth over time.
|
|
