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.
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
can be helpful for boosting your investment portfolio and helping you build wealth over time.