When you receive a dividend you keep it in your account as long as you accumulate enough to buy new shares of any stock you choose. (hellosuckers.net)
Existing shares holders are given the right to buy new shares at the discounted price in proportion to their existing share holdings, thus allowing them to maintain their share of equity. (money.stackexchange.com)
When investors buy those new shares, you again own a share of the proceeds, just as you own a share of all the company's assets. (money.stackexchange.com)