Dividend reinvestment

Q: What happens if dividends are paid during a transfer?

If a dividend is paid while you are transferring investments, it will generally be paid to the broker that was holding your shares on the dividend ex-entitlement date. If this was your old provider, you should contact them to ensure the dividends are transferred to your ii account or paid out directly to you.

Q: What is a DRIP and what is a SCRIP?

DRIP stands for dividend reinvestment plan. This is where your cash dividends are reinvested to buy more shares in the market. Some companies offer their own dividend reinvestment plans. This is not available on our platform. However, you can set up dividend reinvestment using your online account as detailed above for just 99p per company. SCRIP is where new shares are created by the company, which can be taken by investors instead of a cash dividend. In most cases, SCRIP is not available on our platform. However, there are some limited exceptions to this, such as for CREST personal member accounts.

You can set up dividend reinvestment using your online account.

Select Portfolio > Dividend reinvestment from the menu.
You can select the Default Preference to automatically include all purchases and deposits that are eligible.
Or select the individual holdings you wish to auto reinvest.
Once you have selected your options, click Save changes.

Any dividends you select are reinvested automatically at a reduced price of 99p per trade.

Dividend reinvestment usually takes up to two business days after the dividend has been paid into your account.

Dividends available for reinvestment

Dividend Reinvestment is available for popular UK shares (including FTSE350) and a range of investment trusts and ETFs.
The divided must be paid in GBP sterling (£) for it to be reinvested.
The minimum amount per dividend reinvestment is £10.
Dividends which are not classified as ordinary dividends or Property income Distributions (PIDs) for tax purposes are not eligible for reinvestment.

Important notes

Dividends will only be reinvested if your available cash balance is at least equal to the value of the dividend itself when the reinvestment trade is placed.
Once a reinvestment is complete, you will receive a contract note in your account.
It costs 99p for each share which you select for dividend reinvestment.
If you sell or transfer out your entire holding in a share before the dividend is reinvested, then the reinvestment will not take place.
If there is a corporate action on a share, your dividend preference may be removed. If this happens you will need to reset your preference.

How to find out when a dividend will be paid

What happens if dividends are paid during a transfer?

What is a DRIP and what is a SCRIP?