Dividend reinvestment




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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.

dividend reinvestment

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:


 

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