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This document is an authorization form that allows shareholders of Norfolk Southern Corporation to reinvest their dividends into the purchase of additional shares of stock. It outlines the necessary

How to fill out dividend reinvestment authorization

How to fill out Dividend Reinvestment Authorization

1. Obtain the Dividend Reinvestment Authorization form from your brokerage or company.
2. Fill out your personal information, including your name, address, and account number.
3. Indicate the dividends you wish to reinvest by checking the appropriate box.
4. Review the policy or plan related to dividend reinvestment to understand any fees or rules.
5. Sign and date the form to validate your request.
6. Submit the completed form to your brokerage or directly to the company issuing the dividends.

Who needs Dividend Reinvestment Authorization?

1. Investors who own shares in a company that offers a dividend reinvestment plan (DRIP).
2. Shareholders looking to automatically reinvest their dividends to purchase additional shares.
3. Individuals seeking to grow their investment portfolio over time through compounded returns.

People Also Ask about

What is the downside to reinvesting dividends?

Reinvesting can make things more complicated from a tax perspective. If you reinvest dividends, you'll need to add each dividend (the amount being used to buy more shares) to the holding's cost basis. As a result, you could end up with many separate tax lots with different cost-basis levels.

Is taking the DRP a good idea?

Using a DRP is a passive investment decision that won't help you improve your skills. Of course, every investor is different and using a DRP might be the best option for you. If you want to keep it simple, for example, you could buy a fund with a DRP, allowing you to compound your returns over the very long term.

How does dividend reinvestment work?

A dividend reinvestment plan is when you own stock that pays dividends and you choose to have those dividends automatically reinvested, rather than receiving the dividends as cash. Many companies pay out dividends to their stockholders. When you reinvest your dividends, you use those payments to buy more company stock.

What is a dividend reinvestment plan for tax purposes?

If you reinvest your dividend, for tax purposes you treat the transaction as though you had received the dividend payment and then used it to buy more shares. This means: you must declare the dividend as income in your tax return. the additional shares are subject to capital gains tax (CGT)

Which is better, dividend reinvestment or growth?

The growth option is better if you want long-term wealth accumulation, as returns are reinvested. The dividend option suits those who prefer periodic payouts. Your choice depends on your financial goals and need for regular income.

Is reinvesting dividends a good idea?

Reinvesting dividends offers a simple but transformative way to grow your wealth. When dividends are used to acquire additional shares, investors can unlock the potential for compounding; a mechanism where growth builds upon itself over time.

Are dividends taxed if reinvested?

Since reinvested dividends are subject to taxation in brokerage accounts, knowing whether your dividends are qualified or ordinary can help you forecast your tax picture.

What is dividend reinvestment?

A dividend reinvestment plan is when you own stock that pays dividends and you choose to have those dividends automatically reinvested, rather than receiving the dividends as cash. Many companies pay out dividends to their stockholders.

For pdfFiller’s FAQs

What is Dividend Reinvestment Authorization?

Dividend Reinvestment Authorization is a request made by a shareholder to automatically reinvest dividends earned from their shares into additional shares of the company instead of receiving cash.

Who is required to file Dividend Reinvestment Authorization?

Shareholders who wish to participate in a Dividend Reinvestment Plan (DRIP) and automatically reinvest dividends must file a Dividend Reinvestment Authorization with their brokerage or the company.

How to fill out Dividend Reinvestment Authorization?

To fill out a Dividend Reinvestment Authorization, investors typically need to provide their personal information, account details, and indicate their choice to reinvest dividends, often by checking a box or signing a form.

What is the purpose of Dividend Reinvestment Authorization?

The purpose of Dividend Reinvestment Authorization is to allow shareholders to grow their investment over time by reinvesting dividends into purchasing additional shares instead of taking cash payouts.

What information must be reported on Dividend Reinvestment Authorization?

Information that must be reported on a Dividend Reinvestment Authorization usually includes the shareholder's name, account number, choice to reinvest dividends, and sometimes tax information or signatures.