3. Set up a dividend reinvestment plan (DRIP) Robo-advisors automatically reinvest the cash when ETFs pay dividends or interest, which allows you take full advantage of compounding. For small portfolios, this is a pretty minor benefit, especially if you’re able to reinvest that cash with co...
The questions are still rolling in aboutinvesting small amounts per month, this time regarding the differences between a dividend reinvestment plan (DRIP)/stock purchase plan (SPP) and a synthetic DRIP that mostdiscount brokeragesoffer. For those who are new to the concept, a DRIP is a way ...
Purchase enough shares or units so you have enough to DRIP at least one whole share or unit. I usually give myself a 10% margin of safety in case the stock price goes up. Notify your discount broker to enable DRIPs for your newly purchased investment. In my case, I just called and a...