facebookHow do you reinvest your dividends from stocks? Do you still have to make another trade on the same stocks with the dividends collected by doing it manually and incur trading fees? Thanks.? - Seedly

Advertisement

Anonymous

02 Mar 2020

โˆ™

Stocks

How do you reinvest your dividends from stocks? Do you still have to make another trade on the same stocks with the dividends collected by doing it manually and incur trading fees? Thanks.?

How do you reinvest your dividends from stocks? Do you still have to make another trade on the same stocks with the dividends collected by doing it manually and incur trading fees? Thanks.

Discussion (13)

What are your thoughts?

Yes you do have to receive the dividends manually into your bank account.

Personally, I would accumulate such dividends and make an investment maybe quarterly if the quantum is not big. Otherwise the minimum commissions and fees would become a big percentage of your costs.

Bjorn Ng

Bjorn Ng

16 Dec 2019

Level 13ยทBusiness Analyst at 10x Capital

Hi there,

Technically speaking, you are right. That is assuming you are taking cash dividends (deposited in your bank account). I had this question previously too. Keep these cash dividends in your warchest, and wait for the opportunity to buy more of the stock when the valuation is deemed suitable for you.

If you take stock dividends, then it will automatically be added on to your holdings, but take note that you might have odd lots which is a bother for OCD people (like me lol). But, there is actually this ETF called IWDA - they have dividends but they don't give it out to you. Instead, they auto reinvest the dividends for you by adding it onto the share price. That way, your dividends are auto reinvested without you doing anything or affecting your holdings.

View 1 replies

To your question, yes you have to do that. Unless your dividends amount to $5,000 and above I would ...

Read 11 other comments with a Seedly account

You will also enjoy exclusive benefits and get access to members only features.

Continue with Facebook
Sign in with Apple

Sign up or login with an email here

Write your thoughts

Advertisement