We’ve just launched a brand new feature in Emma Invest - Dividend Reinvestment.

If you’re investing through the Emma app, you can now automatically reinvest any dividends you receive - giving your money the best chance to grow without any extra effort.

But what is dividend reinvestment and how can it make a difference to your financial future?

What Is Dividend Reinvestment?

When you invest in shares that pay dividends, you receive cash payouts - usually quarterly - as a reward for holding the stock. Instead of withdrawing that cash or letting it sit unused, dividend reinvestment allows you to automatically use it to buy more of the same investment.

This simple strategy taps into the power of compound growth - where your returns start generating their own returns. Over time, that can mean a significantly larger portfolio, especially if the stock’s value also increases.

Why Reinvesting Dividends Works

Here’s how reinvesting dividends can benefit you:

• Build wealth faster through the power of compounding;
• Automatically buy more shares with zero commission fees;
• Make every pound of dividend income work harder;
• Fractional shares mean even small dividends get reinvested fully.

It’s a strategy used by long-term investors worldwide, and now it’s available to all Emma Invest users in just a few taps.

A Quick Example

Let’s say you hold £2,000 worth of shares in a company that pays an annual dividend of £1 per share. With 100 shares, you’d receive £100 in dividends over the year.

With dividend reinvestment enabled, that £100 buys more shares of the same company - let’s say 5 additional shares if the price is £20. Next year, your dividend payout is based on 105 shares, not 100 — and the cycle continues.

Over time, this snowball effect can significantly boost your long-term returns, turning passive income into active portfolio growth.

How to Reinvest Dividends in Emma App

Getting started is quick and easy:

1. Open the Emma app and go to the Invest tab;
2. Select the share or fund you want to reinvest in;
3. Toggle on the Dividend Reinvestment option;
4. That’s it! Your future dividends will be reinvested automatically.

Make every payout count by automatically reinvesting your dividends back into the stocks you own.

Get started in Emma Invest. Capital at risk.