Automatic dividend reinvestment has now been setup for the Own Every Stock Portfolio.  All stocks in the portfolio that have a daily average volume of over 50,000 shares will be included in the dividend reinvestment plan.  When I first started the Own Every Stock Project I thought I might use the paid dividends to purchase other stocks until a stock had paid enough dividends to purchase another share of its own stock.  After which, I would then buy another share of the original stock.  However, after thinking about it for a while, I believe having automatic dividend reinvestment is much better option.

First of all, there is no cost for setting up the automatic dividend reinvestment.  Every time a stock pays a dividend, fractional shares will be purchased out to 4 decimal places.  Secondly, by reinvesting the dividends, in effect your dividends will be paying dividends.  At first, this doesn't amount to much, but over time this is a very significant number; and since I view this portfolio as a very long term project, I may as well have the dividends be used to immediately purchase more shares rather than wait to purchase more shares after the stock has paid enough dividends.

Finally, part of my reason for starting the Own Every Stock Portfolio is to watch how different stocks grow over time.  If the dividends are automatically reinvested, it will be a much better representation of how much each stock purchase will have grown to over time.  In retrospect, I wish I would have setup this automatic dividend reinvestment option on my account when I first started this project, but hey, live and learn.  As I said when I started this project, I expect to make some good decisions as well as some bad decisions, but along the way I hope to have some fun and learn a little something.  Good luck with your investments, hope you can stop back by again soon.