Unleashing the Power of Dividend Reinvestment Plans
To make it as simple as I can, the way it works is when a company pays you a dividend, and you can use that dividend to buy more shares or fractional shares if you didn’t make enough from that stock yet. Most brokerage firms have an automatic feature to do this for you. I prefer to do it manually as a dividend from one company might go towards me buying a share of a different one.
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