What is the process for corporate dividend reinvestment?

Corporate dividend reinvestment is a process by which companies reinvest dividends they have received on their stocks into additional shares of the same stock. This allows the investor to increase their ownership in the company without needing to purchase additional shares. In Washington state, the process for corporate dividend reinvestment is outlined by the Washington State Department of Financial Institutions. To begin the process, a company must request permission from the Department of Financial Institutions. This request must include the type of stock being purchased, the amount of reinvestment, and the period of time the reinvestment will take place. Once the company has filed the request and the Department of Financial Institutions has approved it, the company must then choose an investment broker to handle the purchase of additional shares. Once the broker is chosen, they will work with the company to identify the best way to reinvest the dividends. The company can then deposit the dividends into their account and the broker will purchase the additional shares. Once the additional shares are purchased, they are automatically sent to the company’s account and the reinvestment process is complete. By following this process, companies in Washington state can reinvest the money they have earned from the dividends they receive and increase their ownership in the company.

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What is the process for corporate dividend reinvestment?

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