In a dividend reinvestment plan, the dividend is reinvested in the scheme itself and is not paid out to the investors. That is, instead of receiving dividend in cash, the unit holders receive units allotted to them at the Ex-dividend NAV.
An investment plan in which you can elect to automatically reinvest cash Dividends and capital gains distributions, thereby accumulating more shares.
An arrangement that allows dividends on stocks or mutual funds to be used to purchase additional shares of the stock or mutual fund. A way of compounding the return on your investment.
Automatic reinvestment of shareholder dividends into more shares of a company's stock. This is often done without having to pay commissions.
Under the Dividend plan of a scheme there are two options available to the investor, viz. Dividend Payout option and Dividend Reinvestment option. Under the Dividend Reinvestment option, the dividend declared is not distributed i.e. given to the investor.but reinvested in the scheme itself.
In a dividend reinvestment option, the dividend is reinvested in the scheme itself. Hence instead of receiving dividend, the unit holders receive units. Thus the number of units allotted under the dividend reinvestment option would be the dividend declared divided by the ex-dividend NAV.
Some stocks and virtually all mutual fund companies allow dividends to be reinvested to purchase additional shares or units.
Dividends that are reinvested in the security that generated them.
The dividends can be reinvested at the prevailing price specified in the Trust Deed.
Occurs when a dividend paying organization such as a corporation or mutual fund automatically reinvest the payable dividend into additional shares of that organization. There can be tax implications for this activity.
An authorized arrangement in which cash dividends are automatically reinvested in additional shares of stock, usually without a fee and sometimes at a discount, increasing the amount of stock in the account. Those dividends are still subject to income tax.
A feature by which income, dividends, and/or capital gains distributions are automatically used to buy additional shares of a mutual fund or other security.
A program in which a dividend paying company (especially mutual funds) will automatically apply an investor's dividend to the purchase of additional shares. The IRS taxes the dividend as a cash dividend whether received as cash or reinvested.
Occurs when a dividend paying organization or a mutual fund automatically reinvests the payable dividend into additional shares.
