How do I use the dividend reinvestment service?
To use the dividend reinvestment service, log in to your account and from the ‘My account’ menu, choose ‘Dividend reinvestment’.
You’ll be able to choose which dividends you want to be automatically reinvested – i.e. used to buy more shares in the company that paid them – rather than kept in cash. For each reinvested dividend, you’ll be charged 1% of the dividend amount. The minimum we’ll charge you per reinvested dividend is £1.50 and the maximum is £9.95.
You can turn on dividend reinvestment for one or more specific shares in your portfolio, or for every eligible share in your portfolio now and in the future. For each account you hold, you’ll need to turn on dividend reinvestment separately. So if you have a SIPP and an ISA, you’ll need to activate dividend reinvestment for both accounts – and that goes for any accounts you open in the future.
To turn on dividend reinvestment for a particular share, just tick the box next to its name. Or if you’d like to reinvest all eligible dividends, choose ‘Select all’. Once you’ve chosen to automatically reinvest a dividend, a red ‘D’ will appear in your portfolio table under the Dividend reinvestment column (D). You can also turn on, and turn off, dividend reinvestment directly from this table – all shares eligible for dividend reinvestment will have a grey ‘D’.
Once you’ve turned on dividend reinvestment for any or all of your shares, we’ll do the rest. Just make sure you hold at least one share in the company at the point the dividend is to be reinvested. We’ll buy as many shares for you as possible with the cash dividend you receive, but won’t carry forward any cash to the next reinvestment. That means there’ll be a small amount of cash that won’t be reinvested.
Keep in mind that income from international shares, residual shares and funds isn’t eligible for dividend reinvestment.
- What investments are included in the dividend reinvestment service?
- Can I reinvest all my dividends using the dividend reinvestment service?
- How can I tell which investments I have chosen to have dividends reinvested for?
- Is there a deadline for choosing to reinvest dividends?
- How will I know when a dividend has been reinvested?
- When will you reinvest my dividends using the dividend reinvestment service?