How to collect dividends in shares rather than cash

We explain the difference between Scrip and Drip dividend schemes
Scrip dividend schemes offer shareholders the option to increase their investment in a company by receiving dividends in new shares rather than cash. They are different to Drip schemes and dividend reinvestment services offered by your stockbroker, as we now explain. Scrip distributions are generally acknowledged in the form of fractions paid per existing share. For example, a company might issue a scrip dividend of 0.05 shares for each...

Important information:

These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.

Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.

Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.

The Shares team

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The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.