Dividend Reinvestment Charges:

Fuzzythinking

Hi

I have a very small dividend today about £2.25 and I was expecting the money to be reinvested in order to have one share price. But the money has not reinvested and return to my normal account. I could not understand then I found the information:

Dividend Reinvestment Charges:


Reinvestment of dividends is charged at 1% of the value of the deal, capped at the appropriate trading commission for that deal. Please note: Dividend reinvestment is subject to Stamp Duty

How can I work this out? Can anyone give me explain why my dividend is not being reinvested? Also give me an example of calulating this out?

Fuzzythinking

Loughton_Monkey

Not enough information!

When you reinvest dividends into shares, it is perfectly logical that you can only buy a 'whole number' of shares. So if you receive £10 dividend and shares are £3 each, would you be surprised to receive the £1 as 'change'?

So one of two things is happening here:

1. Your total dividend is £2.25 and the share price is greater than £2.25

2. Your total dividend is much more than that. It has been successfully reinvested as you requested, and £2.25 is the 'change'.

Fuzzythinking

I have 100 share in Vodafone and received dividend of 0.0225 pence hence I have £2.25 The shareprice is £1.78. I was expecting to get one share added but the dividend payment is returned to my account. I think I have to pay standard fee, stamp duty charge and !% fee. Hence the total fee would be at least £10 . Is that right?

FT