I understand its critical to reinvest the dividend I receive so my investment can grow exponentially. I am 20 years old so I will have time for my investment to grow. Last quarter I bought 5 dollars worth of Coke; (KO), I recently received a small cash dividend which is obviously not enough for me to buy a single share. So my question is how do I go about reinvesting?
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Assuming that your shares are held in “street name” by your broker, they might be able to reinvest your dividends and you can get fractional shares in place of dividends.
But before you agree to do this, find out whether they will charge you for this service. Charging you for this service may actually hurt your investment.
PS: If you own the shares in the form of paper certificates, you will not be able to do this.
I did it with stocks last year, what site do you access the stock, Compuserve? The ex dividend date for June has passed so if you did it today it would go in effect for the 3rd quarter (Sept 10).
Automatic reinvestment works only with mutual funds.