Dividends on SS Shares ISA

Hi all,

I'm sure this has come up before, but I can't find it...

I'm interested in the mechanics of dividend reinvestment with a self-select shares maxi ISA. When a dividend is paid, does that accrue as cash within the ISA to be invested in more shares later? I'm only referring to dividends from individual stocks (or ETFs), not unit trusts, etc.

Many thanks,


  • cheerfulcatcheerfulcat Forumite
    3.3K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    When a dividend is paid, does that accrue as cash within the ISA to be invested in more shares later?
    Yes. How it is re-invested depends on your broker. Hargreaves Lansdown, for one, can automatically re-invest when the cash reaches a certain level though IIRC you can only choose one share to re-invest in, regardless of where the divi came from. With Selftrade on the other hand the cash sits in the account and you have to re-invest manually ( no big deal though ).


  • Ah, great. Thanks.

    Due to my job I have to use one particular ISA company, so I'll contact them on Monday. I imagine it'll be the option where the cash just sits till I do something. The ideal would be for dividends to be reinvested in the companies that paid them, and only the remainder gets left as cash, but that may be wishful thinking :-)

  • david78david78 Forumite
    1.7K Posts
    It should be said that you need to weigh up the charges when you re-invest and often that means not re-investing until a sizeable sum has accumulated.
  • Thanks d78,

    I checked the details with my ISA provider and the dividends just accumulate within the ISA until reinvested. The minimum transaction size I can do is around £130, but the commision is low. In the first couple of years that would be more of an issue than later, I guess.

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