"Automatic reinvestment" refers to the process of taking any dividends, profits, or gains earned from an investment and using them to purchase more shares or assets of that same investment without any input or action required from the investor.
Full definition
Tax texture: What are the differences between an Irish domiciled ETF
with automatic reinvestment and a Luxembourg - based fixed income tracker?
And finally, the «AutoTrade» tool gives traders the option of
automatic reinvestment in a previous winning trade, basically allowing them to automatically continue a winning streak.
We believe that selective reinvestment is far superior to
automatic reinvestment because it allows you to double down on your most compelling opportunities instead of automatically reinvesting dividend payments into stocks whose prices are no longer attractive relative to their underlying earnings power.
JNJ pays most purchase fees associated with the dividend reinvestment plan with one exception — the only exception is a $ 1
automatic reinvestment fee.
They
do automatic reinvestment of dividends, fractional share purchases, and have a fairly wide selection of shares to pick from.
One area that's easy to overlook when figuring your basis — particularly if you sell all your shares in a fund at once — is shares that you've acquired
through automatic reinvestment.
Related: Starting Out with Lending Club Unfortunately, I didn't realize that I had
automatic reinvestment on, so Lending Club took an additional $ 225 and reinvested the return for now a total of $ 5,225.
Believe me, it won't be nice seeing 30 %, 40 %, 50 % or more shaved off my portfolio value during the next meltdown but as long as those dividends continue to roll in I'll be happy and know that
my automatic reinvestments will average down my costs all on their own.
The first is
automatic reinvestment through a program called a «Dividend Reinvestment Plan,» or DRIP for short.
Here's another tip: If you own mutual funds that pay out dividends and capital gains, you can take those distributions in cash instead of in
automatic reinvestments.
I am using
the automatic reinvestment option offered by my crowdfunding site, based on risk parameters I set up when opening the account (loan - to - value ratio, creditworthiness of borrower, location of property, kind of project, etc.).
You might be able to get fractional shares because your order gets rounded up into dollars and the mutual fund takes care of
the automatic reinvestment for you.
Lower minimums, pre-authorized purchases,
automatic reinvestment of distributions, as well as convenient online access to your portfolio through EasyLine ® and EasyWeb ®.
Selective reinvestment and
automatic reinvestment are two ways to skin the same cat: You want your reinvested dividends to accelerate the building of your wealth and your dividend stream by being a cog in the money machine illustrated above.
While 401Ks have sometimes substantial costs, there is normally no added cost associated with
this automatic reinvestment process.
A loss realized on a sale or exchange of shares of a fund may be disallowed if other substantially identical shares are acquired (whether through
the automatic reinvestment of dividends or otherwise) within a sixty - one (61) day period beginning thirty (30) days before and ending thirty (30) days after the date that the shares are disposed of.