Thank you for taking the time to contact us regarding stock dividends and dilution. We appreciate your business.

A dividend paid by the company could potentially lead to dilution. It depends on how the dividend is paid. If the company pays a stock dividend, meaning issuing new shares to each owner, then this would dilute your shares.

However, if they issue a cash dividend whether the company sets the re-investment price, or Fidelity re-invests at the average market price it will not dilute your shares. Cash dividends are simply purchasing other shares that have already been issued to the market place that are for sell.