The strategy is called dividend reinvestment, deployed by beginner investors and some of Wall Street's most seasoned professionals, such as Warren Buffett. One way to accomplish this: dividend stocks, which are reliable, and their dividend yields represent a steady income stream even when markets turn south. How to reinvest dividendsInvestors can enroll in automatic dividend reinvestment programs through their brokerage account, usually in the account settings menu. Dividends don't have to be merely for retireesYou've probably heard stories of retirees who live off dividend stocks. DRIP (Dividend Re-Investment Programs) allows investors to benefit from dividends in a hands-off way.

Source: The Guardian June 04, 2022 21:19 UTC