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What is an automatic dividend reinvestment plan?

April 26, 2017automatic dividend Plan Reinvestment

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What is an automatic dividend reinvestment plan?

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Typically, shareholders can choose to receive any dividends distributed by the Closed-End ETF in cash, or use the dividends to purchase additional fund shares. An automatic dividend reinvestment plan automatically invests all dividends received by investors in additional fund shares (this is the default choice in some Closed-End ETFs).