Anonymous

23 Sep 2020

∙

How do dividends get reinvested?

Hi, i'm new to investing. What happens when u buy an accumulating etf, lets say etf X for $10. And you get a $1 dividend after some time. How does this $1 get reinvested when the etf price is $10 (assume it doesn't change)? Does it only get reinvested after i have accumulate $10 worth of dividend?

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Frankie Rappaport

23 Sep 2020

For the accumulating ones there is no direct pay out it is automatically reinvested into the ETF's net asset value NAV), such that the ETF market price is increased by the dividend

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My objective is to get stable dividends and reinvest into these ETF. Planning to DCA $1000 monthly for about 5 yrs to 10 yrs into ES3, IVV, VT and 3067. How to apportion the $1000 monthly?

Does IVV, VEA and VWO reinvest their dividends? How do I check if the dividends are distributed or reinvested in the factsheet?

How do I know if the share i brought allows for Dividend Reinvestment Plan (DRIP) and where can I actually find the info? Is it recommended to reinvest dividends?

Is there any downside of only investing in REITS/Stocks to get the dividends then sell it off after dividend received (repeating the processing before next dividend date) ?

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