How does having a dynamic variable affect performance?

I have a question about the performance of dynamic in C#. I've read dynamic makes the compiler run again, but what does it do?

Does it have to recompile the whole method with the dynamic variable used as a parameter or just those lines with dynamic behavior/context?

I've noticed that using dynamic variables can slow down a simple for loop by 2 orders of magnitude.

Code I have played with:

internal class Sum2
{
    public int intSum;
}

internal class Sum
{
    public dynamic DynSum;
    public int intSum;
}

class Program
{
    private const int ITERATIONS = 1000000;

    static void Main(string[] args)
    {
        var stopwatch = new Stopwatch();
        dynamic param = new Object();
        DynamicSum(stopwatch);
        SumInt(stopwatch);
        SumInt(stopwatch, param);
        Sum(stopwatch);

        DynamicSum(stopwatch);
        SumInt(stopwatch);
        SumInt(stopwatch, param);
        Sum(stopwatch);

        Console.ReadKey();
    }

    private static void Sum(Stopwatch stopwatch)
    {
        var sum = 0;
        stopwatch.Reset();
        stopwatch.Start();
        for (int i = 0; i < ITERATIONS; i++)
        {
            sum += i;
        }
        stopwatch.Stop();

        Console.WriteLine(string.Format("Elapsed {0}", stopwatch.ElapsedMilliseconds));
    }

    private static void SumInt(Stopwatch stopwatch)
    {
        var sum = new Sum();
        stopwatch.Reset();
        stopwatch.Start();
        for (int i = 0; i < ITERATIONS; i++)
        {
            sum.intSum += i;
        }
        stopwatch.Stop();

        Console.WriteLine(string.Format("Class Sum int Elapsed {0}", stopwatch.ElapsedMilliseconds));
    }

    private static void SumInt(Stopwatch stopwatch, dynamic param)
    {
        var sum = new Sum2();
        stopwatch.Reset();
        stopwatch.Start();
        for (int i = 0; i < ITERATIONS; i++)
        {