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OTV,

Many companies that pay dividends offer reinvestment programs. This involves owning the shares through the company. There is typically a set up fee and somtimes transaction charges. Contact investor relations if you want to set one up and/or get details. This is the way my grandfather invested back in the day, as it was often cheaper than via a broker.

Since owning shares through the company creates a lot of extra accounts to manage, and brokerage costs have come down a lot over the decades, most simply reinvest dividends via the broker. Most offer dividend reinvestment for free (not all do partial shares and often there are restrictions on non-US stocks). Again, best to contact your broker to ask about dividend reinvestment.

Ralph
Helical Investor
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