How to make the most? (Compounding and divident reivesting)

Hello there, I need some assistance as how can I make the most of the investment over a long period of time with trading212 ISA.

  1. I have currently invested 2000 pounds in some stocks and shares. The plan is to deposit deposit every month around 1000 more. How should I invest these new amounts that I’ll be putting every month? Buy more of the same shares, but probably they’re going to be in a higher price?

  2. I heard about the divident reivesting, is this hapenning automatically? I don’t see and option in the trading212 invest or isa site, is it only on mobile? How can I know that I am getting dividends?


how you make the most will be the result of whatever action you take. there is no magic formula or recipe that guarantee’s profits, much less hitting the highest possible for any transactions.

some people choose to buy certain shares regardless of the price and cost-average over time, others may save their money until the stocks they are interested in drop to a certain price that they deem as a value-purchase opportunity. you should read books related to investing and the stock market to determine what your risk-tolerance is and how you will choose to go about growing your portfolio. I personally favour dividend companies for the longterm and the stability it provides, but there is also plenty of money to be made through growth stocks that don’t pay any dividends, it just requires more time and attention.

Regarding Dividends:

Certain companies will pay out dividends according to how many shares you held on the ex-dividend date, this will be put into your account as soon as possible after T212 receive the dividend and you will see a notification appear on your account to alert you to how much dividends you have received, this number will be post-tax adjusted. so for US stocks the 30% withholding tax would already be deducted, this % changes depending on tax treaties with the US.

Reinvesting can be done automatically for shares held inside a PIE, but is something you do manually for shares held and purchased manually outside of the PIE. how these dividends get reinvested is determined by your PIE-Ratio, or the shares you choose to manually purchase with this money outside of a PIE. you can put it back into the share that paid you, or use it towards another share to lock in buying opportunities during cost-averaging.

There is a little gear symbol where you can select dividend reinvesting.

Once you have a portfolio that is well-diversified, it is a good strategy to add more of stocks that you already own, and then also watch out for special opportunities. Peter Lynch advises:

Look at a successful fund like Fundsmith. The manager keeps the same 25 stocks year after year, only occasionally adding a new one or dropping one.