Question regarding dividends

[pearcey29]

Hi Guys/Girls

I am still pretty new to the share market and i have a question on
dividends. So i brought 40 shares in NAB last year but being very raw i didn't understand
what a dividend reinvestment plan was until after the ex dividend date so i ended up with the 40$ (which i will reinvest). I have since changed it so i now am FULL participation in the reinvestment plan. My question now is cause i have the 40 shares, currently NAB is at $24.62 per share, so at 40 shares would i only receive the 1 share? And what happens with the
$15.38 that would be left over. As always all help is very much appreciated

 

[So_Cynical]

currently NAB is at $24.62 per share, so at 40 shares would i only receive the 1 share?

Correct 1 share - the left over is kept by NAB and you may have enough to get 2 shares when the left over funds are combined with the next dividend.

 

[pearcey29]

Correct 1 share - the left over is kept by NAB and you may have enough to get 2 shares when the left over funds are combined with the next dividend.

so it just rolls the money over until there is enough to get another share out of it? Thanks for taking the time out to help me understand it its much appreciated Thanks