Reinvesting dividends can be a smart move

As an investor, you’ll eventually need to make all sorts of decisions — and some will be difficult. But there’s one choice you can make that can be relatively easy: reinvesting stock dividends.

It’s simple to reinvest dividends — you just need to sign up for a dividend reinvestment plan (DRIP). Once you do, you won’t receive dividends directly as cash; instead, your dividends will be directly reinvested in the underlying equity. Be aware, though, that you may incur a fee when reinvesting dividends.

By doing some research, you can find companies that have not only consistently paid dividends ye...