How Do I Re-Invest Dividends

  • Alki

    Posts: 92

    Dec 28, 2012 1:39 PM GMT
    Recently inherited some stock shares and got a dividend check of 100 bucks. I want to reinvest it in the company. How do I do this? I would prefer have this done automatically without a charge. Is this possible?
  • seafrontbloke

    Posts: 300

    Dec 28, 2012 1:53 PM GMT
    Once you've got the cash it's probably only possible by going to your broker and buying them in the market. for $100 it's probably better to use it to buy a freezer ;)

    For the future most companies have a reinvestment scheme - have a look on the back of the div voucher or on the company's investor website.
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    Dec 28, 2012 2:02 PM GMT
    DesertBear saidRecently inherited some stock shares and got a dividend check of 100 bucks. I want to reinvest it in the company. How do I do this? I would prefer have this done automatically without a charge. Is this possible?


    Not all companies have dividend reinvestment plans (DRIPs) - the fastest way to figure it out is to call the investor relations department at the company - which is almost always listed on the company's website. That said, over 700 public companies apparently have them. There are a few things that you have to do in order to take part - to learn more - you can read about them here -

    http://www.dripinvestor.com/FAQ.asp
    and http://www.fool.com/dripport/whataredrips.htm
  • Alki

    Posts: 92

    Dec 28, 2012 2:08 PM GMT
    seafrontbloke saidOnce you've got the cash it's probably only possible by going to your broker and buying them in the market. for $100 it's probably better to use it to buy a freezer ;) For the future most companies have a reinvestment scheme - have a look on the back of the div voucher or on the company's investor website.


    Sounds like an idea on the freezer ;- ). Thanks for the input, really had no idea how to go about it.
  • Alki

    Posts: 92

    Dec 28, 2012 2:10 PM GMT
    riddler78 said
    DesertBear saidRecently inherited some stock shares and got a dividend check of 100 bucks. I want to reinvest it in the company. How do I do this? I would prefer have this done automatically without a charge. Is this possible?


    Not all companies have dividend reinvestment plans (DRIPs) - the fastest way to figure it out is to call the investor relations department at the company - which is almost always listed on the company's website. That said, over 700 public companies apparently have them. There are a few things that you have to do in order to take part - to learn more - you can read about them here -

    http://www.dripinvestor.com/FAQ.asp
    and http://www.fool.com/dripport/whataredrips.htm


    Thanks for being specific and the providing the links. Will work on this today.
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    Dec 28, 2012 3:28 PM GMT
    Yes, most all the companies I've held stocks with give you an option on what to do with your dividends, either receive as cash (check) or reinvest them. Reinvesting them allows you to build the stock portfolio without having to do anything. You can usually change the option online or call the number on the statement. The only time I would consider cash dividends is if I were considering the income as a part of my monthly income (IE: retirement income to supplement my retirement check). Some day I'll have that concern! LOL
  • RaggedyMan

    Posts: 7185

    Dec 28, 2012 8:35 PM GMT
    your company should have that option, cash out or reinvest. call your broker and have them set it up. its easy. companys pay dividends all the time. i got one yesterday and got paid out. its income so its taxed the same.
  • Alki

    Posts: 92

    Dec 28, 2012 8:39 PM GMT
    This particular company does not do DRIPS. Checked online and will work with a cheap fee for service trader -- $6.95/trade are his only fees.

    Thanks for the information.
  • Posted by a hidden member.
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    Dec 28, 2012 8:40 PM GMT
    Don't worry about investing, your socialist president already has plans to spend your money.
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    Dec 28, 2012 9:39 PM GMT
    SixSixAtl said
    mx5guynj saidDon't worry about investing, your socialist president already has plans to spend your money.


    but not before he takes all your guns away...


    Then the US will be just like Israel, UK, Ireland which all have much stricter gun laws than the US so the criminals use bombs instead or like Japan where they use nerve gas.
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    Dec 28, 2012 11:31 PM GMT
    mx5guynj said
    SixSixAtl said
    mx5guynj saidDon't worry about investing, your socialist president already has plans to spend your money.


    but not before he takes all your guns away...


    Then the US will be just like Israel, UK, Ireland which all have much stricter gun laws than the US so the criminals use bombs instead or like Japan where they use nerve gas.

    Oh I see this forum being hijacked and I'm not sure it will ever come back. Now what were we discussing, oh yes, taxing your gun dividends....carry on.