I want to reinvest the dividends , how can i do that?

General
1

i have shares of hexaware and i am receiving the dividends of the same from past months, i am planning to hold it for long term say seven years and i want to reinvest the dividends payment which i am receiving in the form of bank deposit from zerodha.
if say i have 500 shares and i have received rs 1000 in the form of dividends, now zerodha is depositing the dividend income in the bank in the form of bank transfer, i dont want the dividends income in the form of bank deposits instead i want that money to be reinvested in the hexaware shares which i am possessing, so that the compounding can work, so, how can i do it. any advise on this.
i need multiple answers on this. as i am not aware of how to reinvest the dividends for compounding to work?

2

It is not Zerodha who is Sending you the money.

It is the company who is distributing the dividends directly to the Shareholders Bank Account registered on the Demat Account.

This is the only standard procedure to receive your dividends.

You will have to manually transfer the dividends received, back to your trading account and buy more shares of the same company from the open market.

This is how the compounding works.

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3

thanks , got cleared now. if any more updates are there in this regard, please inform me, i will be more than obliged.
have a great time trading.

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