Reinvesting my dividends

NhocCuteGirlUK

Which broker are you with?

__________________

atush

IronWolf wrote: »

most brokers have an automatic reinvestment function which has very small charges

This is true of all brokers I have used and it has neglible costs. But some mean you have to sign up to reinvest ALL dividends so you can't pick and choose. But it is always worthwhile to do, unless you want to save up dividends to buy a new stock.

mr_fishbulb

BLB53 wrote: »

I think HL are ok for unit trusts but for shares and Investment Trusts or ETFs you may be best with another online broker. I have been with Interactive Investor for over 10 years and have no complaints. Their standard charge is £10 but you can also use their 'portfolio builder' which is really economical for the dividend reinvesting and that is only £1.50 per deal.
Have a look at their website and see whether it might be an option?

Cheers, but I'm continuing my OEIC investments (which are already in H-L S&S ISA) this tax year too so I can't pay into 2 S&S ISAs.

mr_fishbulb

barak wrote: »

Not necessarily! This was discussed at some length recently -

https://forums.moneysavingexpert.com/discussion/3424505

Cheers. Just checked my ISA and it is set to automatically reinvest dividends when they get to £200. Doesn't say how much I would pay for this though.

B_Blank

mr_fishbulb wrote: »

Last month I made my first share purchase (had been only in funds before now).

I have £1000 worth of shares and the dividends are likely to total somewhere between £30 and £40.

If I reinvest this, I'm going to have to pay £10 for the broker fees. This doesn't seem very sensible, but then neither does leaving it there until I have enough dividends to make the broker fee an small percentage (which could take years).

What am I to do?

Dont bother buying shares unless you spend at least £2k per transaction. Otherwise the fees will kill you. I would save your money then invest in a diversfied fund (maybe a ETF) when you have £1k or so. You could do this because funds are cheaper, often without any initial fee although it varies.

mr_fishbulb

B_Blank wrote: »

Dont bother buying shares unless you spend at least £2k per transaction. Otherwise the fees will kill you. I would save your money then invest in a diversfied fund (maybe a ETF) when you have £1k or so. You could do this because funds are cheaper, often without any initial fee although it varies.

But ETFs would incur the same fees as they are bought and sold like shares?

moneylover

no stamp duty on ETFs