The default setting for most mutual funds allows you to automatically reinvest dividends in fractional shares when they are paid to shareholders. Many ETFs also now allow reinvestment of dividends as well - check with your brokerage company as to how to enable this feature for each individual position. If you are planning on holding an investment for a long period of time and don't plan on needing the spendable income from the dividends, it may be advantageous to reinvest them rather than pay to cash.
Typically, brokerage firms or custodians can turn on "automatic dividend reinvesting" for particular securities. There may be a fee for it, depending on the type of security. Typically there's a fee/commission if it's a stock, but not if it's a mutual fund. Call the trading desk for wherever your security is held to inquire about it.
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