Is an investment strategy considered a dividend reinvestment when exclusively using mutual funds?

Asked 5 years ago

I don't deal with mutual funds for a whole host of reasons. To clarify, my approach is to track and forecast the arrival of cash dividends in my account, so I can plan to set limit orders to buy more dividend-generating stock on discount, churning dividends, and saving mixed into more dividend generating shares of stock. Would this strategy be considered a dividend reinvestment?

Andia Rispah Igobwa

Monday, June 28, 2021

Under the dividend reinvestment program, companies allow shareholders to use their dividends to buy more stocks.

The dividend reinvestment strategy will depend on the type of fund you invest in.

You can either choose a mutual fund with a growth option or one that allows you to reinvest.





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