Most brokers provide this service for free. After that, your dividends will be automatically reinvested. Just let your broker know you want your dividends reinvested (either all of them or specific stocks). We recommend setting up a DRIP with your broker. And if you set up a Dividend Reinvestment Plan (DRIP), the entire process will occur automatically so you can sit back and watch your retirement savings increase exponentially. Those new shares produce new dividends, allowing you to take advantage of compound growth. How does it work? Instead of spending your distributions, you use them to purchase additional shares of a stock. Reinvesting your dividends is an easy – and incredibly effective – way to turn those cash payments into a sizable sum.
The annualized return is the average rate of return you receive from your dividends per year.
The dividends paid is the total sum of distributions paid on both the initial shares and any shares from dividend reinvestment. The number of shares includes initial shares plus shares purchased through dividend reinvestment.
The total value is equal to the stock price multiplied by the total number of shares, including any shares purchased through dividend reinvestment. Man looking at dividend reinvestment calculator
