Power up: dividend reinvestment special

How to own more shares without putting your hand in your pocket
Thursday 16 Mar 2017 Author: Emily Perryman
If you’re a long-term investor one of the simplest ways to boost your returns is to reinvest dividends. You end up owning more shares or units in a fund without putting your hand in your pocket for more cash beyond the original investment. Let’s say you own £10,000 worth of shares in Company X. This pays 5% dividend each year, equal to £500 on your £10,000 investment. If you...

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The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.