Reinvesting dividends can boost your total pension investment returns. But what options are there for doing this? : According to a study by Barclays, if you’d invested £100 in the UK stock market in 1945, and reinvested all your dividends, you’d have a stunning £180,000, even after inflation. That’s the power of dividends. But how do you actually go about re-investing dividends, which will often be relatively small amounts? A friend of mine has some shares in an employee-based scheme, and he takes his dividends as scrip — so instead of cash, he gets the equivalent in new shares.