A Dividend Reinvestment Plan (DRP) lets investors automatically reinvest dividends from shares or ETFs into additional shares, rather than receiving them as cash. It may help steadily grow your holdings over time, potentially avoiding brokerage fees and manual reinvesting.
How Does a DRP Work?
When a dividend is paid, instead of cash hitting your account, the DRP automatically purchases more shares. The number of extra shares you receive depends on the dividend amount and the share price at reinvestment.
Example:
You own 100 shares of a stock.
A dividend of $1 per share is declared ($100 total).
Instead of cash, that $100 automatically purchases additional shares.
If the share price is $25 at reinvestment, you receive 4 extra shares ($100 ÷ $25).
Navexa’s Role in Tracking DRPs
Navexa accurately tracks the impact of DRP transactions on your overall portfolio performance. However, please note:
Navexa does not automatically sync DRP settings from your broker or share registry (e.g., Computershare, Link Market Services).
You must manually update any DRP setting changes in Navexa to maintain accurate portfolio records.
Why Track Your DRP in Navexa?
• Clearly see your true returns, including reinvested dividends.
• Improved accuracy and transparency for tax reporting.
• Make informed investment decisions based on comprehensive tracking.
Remember, this is general information, not personal financial advice.