Sentences with phrase «automatically purchasing more shares»

Your returns are juiced more by doing this rather than leaving dividends in a brokerage account and the dividends keep growing over time, automatically purchasing more shares for you.

Not exact matches

By reinvesting the dividends, or capital gains, you can purchase more shares of the business without paying any fees or commissions to brokers... The first share has to be purchased through a broker, but with a DRIP (dividend) reinvestment plan) all future profits may be reinvested automatically with out paying broker fees to purchase shares on your behalf.

I wrote a 3 part series on DRIPs which you can read if you're not familiar with them, but the basic idea is that the dividends you would have received (in cash) get reinvested automatically by purchasing more shares.

When dividends are reinvested automatically, the funds are routed back into purchasing more shares of the companies that issued the dividends.