As a client of Emperor, you have the option of reinvesting or not reinvesting the dividends that your portfolios generate.
Reinvesting dividends enables you to grow the value of your portfolios at a compounded rate. In other words, dividend dollars are used to buy more shares that in turn generate more dividend income that allow you to buy more shares, and so on. With a long runway ahead, small dividend payments can compound over time and allow you to build large portfolios.
If you choose to reinvest dividends, your dividend dollars are automatically reinvested in the stocks that you own. The best part about reinvesting is that we can purchase fractional shares so your money is put to work immediately. In other words, you do not need to wait to accumulate enough dividend dollars to purchase one entire share of a company.
If you choose not to reinvest dividends, your dividend income will sit in account cash until you choose to withdraw it. You can toggle Dividend Reinvesting for each of your goals although we highly recommend keeping reinvesting turned on.