How Dividend Reinvestment can 5X Your Returns [Must-See Strategies]

Do you know the three ways to reinvest dividends? Or the two dividend reinvestment strategies that will double your returns? I’ll not only show you how to reinvest dividends but reveal the truth about dividend reinvestment plans and show you how dividends are taxed.

Research shows that 40% of the stock market return is from dividends and reinvesting those dividends is one of the biggest decisions you can make. We’re not talking whether you should reinvest dividends…but how! How do dividend reinvestment plans work and how do you get the most from your money?

I’ll start off describing the three types of dividend reinvestment plans (DRIPs) and why I use a special investing site to reinvest dividends. I’ll then show you how dividends are taxed and how to keep more of your money. Then I’ll reveal two dividend investing strategies that WILL make more money and grow your portfolio.

1:30 What is a Dividend Reinvestment Plan?
1:56 Should I Reinvest Dividends?
3:20 Three Ways to Reinvest Dividends
5:58 Why I Use M1 Finance for Dividend Reinvestment
7:30 How are Dividends Taxed?
8:08 What are Qualified Dividends?
10:30 Two Dividend Reinvestment Strategies

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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.

#dividends dividendstocks #stocks

[meatymouse]

I use M1 for my dividend portfolio and let it spread my dividends across the whole portfolio

[tydonnelly]

Totally new to this! I started with $500! invested in some companies that pay dividends and just set it to automatically reinvest

[PeteCLeonard]

I use my dividends towards my next purchase of any dividend stock in my portfolio that I deem of good value, not necessarily the company I got the dividend from. My buying philosophy is that I only use my money and dividends towards good companies that are currently being sold on the stock market at a bargain price.

[droach]

I made a DRIP pie on M1 Finance. I put 20 dividend stocks and set my account to dividend reinvesting and I set my bank account to automatically deposit money into my pie

[Andys]

With my M1 IRA it's set up to reinvest all the dividends into the pie. For my Roth with Fidelity I'm going for the DIRP method until I have enough shares to where I can use the dividends to buy other stock.

[akeysolutions]

Thanks for the info, even in lack in English I try to understand as much as I can, so is better dividend stocks or long term investment

[SoHailusive]

I reinvest my dividends automatically via Fidelity back into the company that paid them. I do it within my Roth IRA so I don't plan on needing this money for another 25+ years. So let the compound interest fly.

[maddog]

I have a roth ira which is a drip I have 20 positions all dividends. Though I just started it 2.25 years ago but I'm up 16%. I have 16 stocks and 4 ETFs. I have 11 stocks with equal value in each and 9 that I'm building a position in. I'm not sure how many positions I want to build on. 20 is good for me now.

[richardcarlin]

For single stocks, I mostly reinvest in stocks that that are dropping in value.

[FinGeeknow]

I use M1 finance with a set, $200/week deposit which is auto-invested on Mondays. On top of that, I have a dividend portfolio which, all said, pays some type of dividend every week. I also have a smaller growth portfolio which auto-invests $50/week which has also been coming along nicely. At the end of each year, I re-balance both accounts to have an 80/20 split (which means I sell off some of my growth stocks and allocate those funds to my dividend portfolio to maintain that balance.)

[robertoconnor]

All my dividends buy Berkshire Hathaway. The €’s are in my account until Dec, then I buy as much as I can which has been 2 or 3 shares historically 😆

[QuesttoFIRE]

I let M1 finance automatically drip to my under allocated stocks, which is great! I don’t have to think about it, it keeps my portfolio balanced, and I’m typically dripping on a good value buy.🔥🔥 Oooh you just mentioned M1, I bet you’re getting to it! Lol yep! I should’ve listened before starting to comment! 🤣😂🤣👏🏻👍🏻👍🏻📈

[chanceherle]

Great video as always. I collect all my dividends then deploy them where I think I need to rebalance

[jsychw]

You're the man brother. Very knowledgeable.

[Squintillions]

I had no idea about direct share investments from the companies’ websites. Always learn something from you. 🙌🏻

[mindsinmotion]

I reinvest my dividends based on my positions sizes, prices and which companies are coming up on ex dividend.

[PassiveIncomeTom]

*Great methods as always Joseph to 10X your investment!* 👍

[psychedeliccomics]

Thank you very much Joseph! Just what I need a clarification on! Always looking forward to your videos!

[thomassnaaijer]

It’s worth noting that stock prices tend to drop by about the amount of the dividend on the ex dividend day, so buying just before and selling just after this will not end up gaining you all that much, might even lose you money if a company is leveraged and going into more debt to pay a dividend.

[bronsonlee]

Every time i watch u to me u are "DOCTOR' finance ur knowledge is very excellent i do always smash the like buttons quick questions 1 can i use ROBO advisor like M1 do u use this for dividend investing 2 Bitcoin keeps going up i feel like i missed the opportunities very speculative your opinion on bitcoin investment 3 i did watch ur crowdfunding video did u cover about NON accredited investors for PRE IPO? always much appreciated for ur contents Mahalo from Hawaii