What are the options to reinvest dividends?

When it comes to reinvesting dividends, BNY Mellon Shareowner Services offers several options for shareholders. One of the most common choices is the Dividend Reinvestment Plan, often referred to as DRIP. Through this plan, shareholders can opt to have their dividends automatically reinvested into additional shares of the same stock rather than receiving cash payouts. This can be a convenient way to increase one’s investment in a company steadily over time without incurring additional transaction fees. Another option is to manually reinvest dividends. In this scenario, a shareholder can choose to take the cash from the dividends and purchase additional shares on their own or invest in other securities. While this method requires more active management, it provides flexibility in selecting how and where to invest the dividend payouts. Additionally, some investors might consider using mutual funds or exchange-traded funds that allow for dividend reinvestment. This can provide diversification along with the benefit of compounding returns over time. For detailed information on specific offerings, including eligibility and procedures, it might be helpful to explore the current web page for BNY Mellon Shareowner Services.