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Dividend Reinvestment

The dividend reinvestment plans are a formula that allows the dividends received are deposited into an account, high interest, and then reinvest it by buying shares of those same society. It is a product designed for investors risk profile medium / high as it assumes that the money collected in dividend re-enter world markets, and therefore, is affected by volatility that they can have.

However, there is a product you normally like too much to those who invest in the stock market routinely, as is usually "boring." However, for those who have a share holding in the long term, it is an encouragement to see how each year the number of shares held by a company is gradually increasing.

The operation is as follows:

  • The shareholder claims its dividends on the shares held in the portfolio.
  • The bank enters the amount of such dividends at a high interest account created for that purpose.
  • According to the stipulated period (quarterly, half yearly or annually), the Bank will purchase the existing total balance in the account (which can not be made more revenue than income from dividends) and interest specific to your account ), the equivalent in shares.

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