automatic dividend reinvestment

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

References in periodicals archive ?
Further, the shareholders of these monthly distributions can accumulate more shares in a fund via the automatic dividend reinvestment plan, which when a fund's shares are trading at a premium, distributions will be automatically reinvested via the plan at NAV or 95% of the market price, whichever is greater; and if shares are trading at a discount, distributions will be reinvested at the market price through an open market purchase programme.
A is the issuer of the fund, which is available in one of two forms: either with automatic dividend reinvestment or distribution.
Jason James owned 10,000 shares in the Polar Fund and participated in its automatic dividend reinvestment program.
To find out if a particular company offers an automatic dividend reinvestment plan and will allow you to buy directly from it, call the investor relations department.
However, with fund shares, taxpayers may not be aware that a purchase will occur within the 61-day period as a result of the automatic dividend reinvestment option.
Shareholders participating in Liberty All-Star Growth Fund's Automatic Dividend Reinvestment and Direct Purchase Plan will receive shares purchased for them on the open market by the Plan Agent (if the shares are trading at a discount from their net asset value) or issued to them by the Fund (if the shares are trading at or above their net asset value).
The "Buy One Share" program is designed to help investors gain entry into automatic dividend reinvestment programs (DRIPS).
Shareholders participating in Liberty All-Star Equity Fund's Automatic Dividend Reinvestment and Direct Purchase Plan will receive shares purchased for them on the open market by the Plan Agent (if the shares are trading at a discount from their net asset value) or issued to them by the Fund (if the shares are trading at or above their net asset value).
Shareholders participating in Liberty All-Star([R]) Equity Fund's Automatic Dividend Reinvestment and Direct Purchase Plan will receive shares purchased for them on the open market by the Plan Agent (if the shares are trading at a discount from their net asset value) or issued to them by the Fund (if the shares are trading at or above their net asset value).
Shareholders participating in Liberty All-Star([R]) Growth Fund's Automatic Dividend Reinvestment and Direct Purchase Plan will receive shares purchased for them on the open market by the Plan Agent (if the shares are trading at a discount from their net asset value) or issued to them by the Fund (if the shares are trading at or above their net asset value).
Under the Fund's Automatic Dividend Reinvestment Plan (the ''Plan''), each common shareholder will have all distributions automatically reinvested in additional common shares of the Fund by The Bank of New York, as agent for shareholders pursuant to the Plan, unless the shareholder elects to receive cash or unless the shares are registered in the name of a broker-dealer or other nominee (that is, in ''street name'') and the respective nominee does not participate in the Plan.
Under the Fund's Automatic Dividend Reinvestment Plan (the "Plan"), each common shareholder will have all distributions automatically reinvested in additional common shares of the Fund by The Bank of New York, as agent for shareholders pursuant to the Plan, unless the shareholder elects to receive cash or unless the shares are registered in the name of a broker-dealer or other nominee (that is, in "street name") and the respective nominee does not participate in the Plan.

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