Tired of Dividends Just Sitting There? Herd 'Em Up and Reinvest 'Em with Schwab!
Ah, dividends. Those lovely little cash gifts companies shower upon their loyal shareholders (like us!). But what happens when those dividends just...well, sit there? Like a forlorn sock that lost its partner in the dryer. Don't let your dividends become lonely socks! Today, we're here to wrangle those cash cows and put them to work with a handy guide on how to change dividend reinvestment on Charles Schwab.
Why Reinvest, You Ask? It's Like Compound Interest on Autopilot!
Think of reinvesting dividends like that snowball fight scene from "Office Space." You start small, but with each roll through the compound interest snow, your snowball of wealth grows bigger and bigger. Reinvesting your dividends automatically purchases more shares of the stock, which means more future dividends! It's basically autopilot for growing your investment nest egg.
But First, a Word on Where to Find These Dividends Hiding
Before we get down to business, you gotta know where your dividends are chilling. Head over to your Schwab account, log in with your super-secret password (hopefully not "password123"), and navigate to the "Accounts" tab. Then, select "Positions" because that's where all your investmenty-stuff resides.
Alright, Alright, Enough with the Tourist Trip, How Do I Reinvest?
Now for the main event! Look for a glorious column titled "Reinvest?". This is where the magic happens. See all those "Yes" and "No" options? Click "Yes" for any stock you want to automatically reinvest those dividends. Simple as that! Although, if you're feeling fancy, you can also choose to have your dividends deposited into your checking account for a shopping spree (but maybe invest a little too, future self will thank you).
Pro Tip: For new stock purchases, you can actually check the "Reinvest Dividends" box right when you're buying the stock. Saves you a future trip to the "Reinvest?" rodeo.
Congratulations! You're Now a Dividend Reinvesting Machine!
There you have it, folks! You've successfully wrangled those lonely dividends and set them on the path to growing your wealth. Now, go forth and conquer the investment world (and maybe treat yourself to a celebratory non-dividend-funded ice cream cone). Remember, even small changes can make a big difference in the long run, and with Schwab's easy-to-use platform, there's no excuse to let your dividends gather dust. Happy investing!
