automatic dividend reinvestment

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Automatic Dividend Reinvestment

A practice or agreement in which dividends on a security are used to buy more of the same security, rather than disbursed to the investor in cash. Automatic dividend reinvestment is relatively common in mutual funds; investors agree to use dividends and other capital gains to reinvest in more shares of the mutual fund. While this involves assuming more risk in the mutual fund, it carries the possibility of higher returns.

automatic dividend reinvestment

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Vanguard, in a note it posted for ETF and fund investors, advises that investors who are comfortable with their investment plans stick with those plans, including regular investments through payroll deductions, automatic investment plans, or target-date funds.
ShareBuiler is an online brokerage specializing in automatic investment plans.
Get started with automatic investment plans, tax-favored savings and retirement accounts, and other convenient and rewarding ways that can make your net worth grow.
A: In the past, I've always recommended automatic investment plans with mutual fund companies.
Automatic investment plans, as they are often called, require a minimum initial investment as long as you agree to have a set amount withdrawn from your checking or savings account.
With the recent acquisition of ShareBuilder, ING DIRECT product offerings now include simple and direct investment products including stocks, exchange traded funds, options trading, automatic investment plans, and an affordable 401(k) plan for small businesses.
E[acute accent]This combined with the Automatic Funding and Automatic Investment Plans will offer the new and seasoned investor the streamlined trading functionality and fee base once only allowed for larger firms and institutions.
The PortfolioBuilder applications, together with ShareBuilder's automatic investment plans, enable investors to create, purchase and manage their diversified portfolios.
ShareBuilder gives customers the power to create automatic investment plans in ETFs and stocks or buy and sell them real-time through a secure, easy-to-use online investing platform.
Using ShareBuilder's unique advisory service and automatic investment plans, investors can create, purchase and manage their diversified portfolios using either PortfolioBuilder, a simple tool available to anyone who visits the ShareBuilder Web site, or PortfolioBuilder Plus, a more interactive advisory tool available to all ShareBuilder customers
For participants in Automatic Investment Plans, the initial investment is $1,000 with subsequent monthly investments of $100.
Exchange, sell or buy additional shares -- Update automatic investment plans and systematic withdrawal plans -- Change address and distribution options -- Order money fund checks

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