Stockbrokers that automatically reinvest dividends

jimshorts72

Not doing to much trading at the moment but hold some shares in a Barclays account. They only reinvest dividends if the amount is greater than £10. Can anyone recommend stockbrokers that reinvest divs. no matter how small.

Thanks

EdInvestor

Would you really want then to do that? The charges would wipe out the dividend - as it will often do at £10.

tom188

Halifax sharebuilder.

Paper dealing services where the company has a dividend reinvestment plan in place.

cheerfulcat

The Motley Fool sharebuilder account will reinvest dividends for a 1% charge ( + stamp duty ). Some companies operate DRIP or scrip schemes for reinvestment for holders of share certificates. There is a MF board, here; have a look at the FAQs ( probably out of date but will point you in the right direction regarding which companies offer this option ).

Hargreaves Lansdown offer a reinvestment scheme as well; IIRC it collects all of the dividends due to your holdings and reinvests them into the share of your choice when a certain sum has been amassed ( £250, I think ). This is not as flexible as a DRIP or scrip scheme but may be worthwhile for some.

jimshorts72

EdInvestor wrote:

Would you really want then to do that? The charges would wipe out the dividend - as it will often do at £10.

You are right, it would depend on Stockbrokers not taking the ps with charges. Got Charles Schwab account in USD and they use dividends to buy fractions of shares and charge minimal amounts in fees

HGLTsuperstar

Hoodless Brennan will not charge you for a DRIP but there is the stamp duty etc