Reinvesting dividends is the best way to set and forget while maximising the power of compound interest.

If you have invested directly in ETFs or shares, those investments may pay dividends. A number of ETFs heavily weighted on Australian stocks are common examples of dividend-paying stocks.

There are two popular ways to re-invest your AU dividends:

1. If a stock offers a dividend reinvestment plan (DRP), you can sign up for that via the responsible share registry portal. Once you accumulate enough dividends for a whole unit, the re-investment will be made back into the same stock. There are normally no fees to participate in DRPs.

2. If you prefer to have more choice in how your dividends are re-invested, you can set up an automation on pearler to set instructions for any cash dividends received into your AU cash account. Please ensure you have set up a Direct investing automation for your dividends to be directed towards first. Brokerage fees may apply.

For US holdings, Currently, there is not an automated solution for reinvestment outside of having the dividend payments converted back to AUD when received using the Hide US Cash customisation feature.

If you don't have this feature active then US dividends will come into your USD cash account, from there you can use them to place more US orders