Dividend reinvestment programs allow investors to reinvest the dividends they receive back into a company's shares without paying tax on the dividends or a transaction fee on the share purchase.

Question

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Dividend reinvestment programs typically allow investors to reinvest dividends into additional shares, often without a transaction fee, but the dividends are still subject to taxation as income.

Dividend Reinvestment Programs Allow Investors to Reinvest the Dividends They