to reinvest dividend
- phrasal verb
- Specialized
- By opting to reinvest dividends, she was able to accumulate more shares without any additional cash outlay.
Examples
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Many investors choose to reinvest dividend payments to take advantage of compound growth over time.
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He always prefers to reinvest dividend earnings back into his portfolio rather than spending them.
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Instead of cashing out, she decided to reinvest dividend income automatically through a dividend reinvestment plan.
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Don't reinvest dividends!
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Have you decided to reinvest dividends this quarter?
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Many investors choose to reinvest dividends instead of taking the cash payments, which helps grow their investment over time.
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If you decide to reinvest dividends, you can increase your holdings in the company even during market fluctuations.
Synonyms
To put money you earned back into a business or investment
How Reinvested
Surface Forms
Morphology
The meaning is directly and predictably derived from 'reinvest' (put earnings back into investments) + 'dividend' (payment to shareholders); a learner who knows both words can infer that it means using dividend payments to buy more shares. This compositional pattern is straightforward and common across languages and financial contexts, so it should be immediately comprehensible to a B1 learner.
Etymology
Reinvest dividend can be pictured like a gardener who uses the fruit of a tree to plant new seeds. The dividend is the 'fruit' — a small payment from your investment — and to reinvest it means you buy more shares with it instead of taking it as 'cash', so your investment can grow over time.