Dividends: Turning Pocket Change into an Avalanche (Well, Maybe a Snowball Fight) with Wealthsimple Trade
Hey there, fellow investorinos! You've conquered the stock market, you're buying low and selling high (most of the time), and now those sweet, sweet dividend payments are rolling in. But what to do with this financial confetti? Stash it under your mattress? Nah, that's what your childhood piggy bank is for. Buy that inflatable lobster pool float you've been eyeing? Tempting, but let's be honest, those things only look good in stock photos.
This, my friends, is where the magic of dividend reinvestment comes in. It's basically like compound interest on steroids, but way cooler because it involves companies showering you with money (well, a tiny sprinkle).
Now, you might be thinking, "Reinvesting dividends? Sounds fancy, but how do I do it with Wealthsimple Trade?" Well, fret no more, because I'm here to break it down for you simpler than a one-ingredient recipe (hint: it involves ramen noodles).
Turning on the Dividend Reinvestment Money Machine (with Minimal Effort)
Wealthsimple Trade, bless its digital heart, has made this process easier than, well, taking candy from a baby (please don't do that). Here's the cheat sheet:
- Log in to your Wealthsimple Trade app. Because, duh, you gotta be logged in to play the game.
- Tap the Home tab and choose your self-directed investing account. This is where the dividend-generating party happens.
- Hit the gear icon in the top right corner. Think of it as your secret settings button.
- Select the glorious option called "Dividend reinvestments." Because, well, that's what we're here for!
- And voila! You've activated the Wealthsimple Trade dividend reinvestment machine! Now, sit back, relax, and watch those dividends automatically morph into more shares of your favorite companies.
Bonus Tip: Fractional Shares - Your New BFF
Wealthsimple Trade also offers fractional shares, which means those leftover cents from your dividend reinvestment won't be collecting dust. Instead, they'll be used to buy tiny slivers of more stock, maximizing your growth potential. It's like getting a bonus sprinkle on your financial sundae!
So there you have it! With dividend reinvestment turned on, you're well on your way to growing your wealth like a well-watered Chia Pet (minus the creepy hair). Remember, consistency is key. Those little reinvested dividends might seem insignificant now, but over time, they can snowball into a serious financial advantage. Who knows, maybe one day you'll be able to afford that inflatable lobster pool float... responsibly.
