Re-investment of dividends

POSTED BY Firoz Ahmed ON August 1, 2012 1:25 pm ONE COMMENT

Hi everyone,

I have been a regular reader of this blog for more than a year now and have benefited immensely. I have been investing regularly in Mutual funds through SIP route. I have also some investments in direct stocks.

I have received some dividends from the stocks. I have heard that re-investment of dividends in the same stock is very important for long term results. Now what is the mechanism to do it?
Is there any automatic way i can reinvest in the same stocks?

One reply on this article “Re-investment of dividends”

  1. Ramesh says:

    Not really.

    You can buy the same stock for the amount of dividend received. But for small amounts, it is very tedious.

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