what is the dividend reinvestment ?
dividend reinvestment means reinvesting dividend payments from stocks you hold back into your stock or investment portfolio rather than spending them this may involve taking the dividend paid by each individual stock and using it to buy more shares of the same stock or may involve buying other stocks or assets as part of a portfolio to help spread the risk by reinvesting dividends an investor could benefit from increased value growth from his or her increased stock holdings as well as increased dividend income from subsequent dividend payments 