How To Make More Money From Your Shares
| Money : Stocks And Shares One simple tip with shares is not to take out your dividends, but use the option to buy more shares with your dividends. Then you get a nice compound effect whereby each time a dividend is paid, often annually or sometimes twice a year and so on, then you get more shares rather than just the cash. This in turn increases your holding and therefore next year you get a larger dividend based on the larger holding (assuming the percentage dividend stays level or goes up!) and then get more shares, and so on as time goes on. Therefore unless you desperately need the dividend - unlikely to be a large amount anyway unless you have a sizeable holding - it is always worth reinvesting your share dividends.
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