On-line share dealing, with DRIP

dollywops

Up to now, all our share dealing has been through a broker. Equally, where possible, dividends are taken as shares rather than cash.

We are now looking at doing share dealing on-line. However, we still want the flexibility of DRIP. I have only found Motley Fool who offers this, so far. Can anyone recommend any other brokers offering this.

Thanks in advance.

barak

I'm surprised if most online brokers don't have an option to reinvest dividends.

Halifax Share Dealing certainly does, although you can't pick and choose - except that you could reinvest all dividends within an ISA account and receive all dividends from a share account outside an ISA - or vice versa.

This facility has nothing to do with companies' own DRIP schemes.

dollywops

barak wrote: »

I'm surprised if most online brokers don't have an option to reinvest dividends.

Halifax Share Dealing certainly does, although you can't pick and choose - except that you could reinvest all dividends within an ISA account and receive all dividends from a share account outside an ISA - or vice versa.

This facility has nothing to do with companies' own DRIP schemes.

We don't want a broker DRIP. What we require, is what we currently subscribe to - all dividends are taken as shares rather than cash, so we constantly build up our holdings in each company we hold shares in.

Tomorrow, I am going to have to start making some telephone calls. Motley Fool appears to offer everything we require:-

Dividend re-investment with their share dealing accont
Transferring paper certificates to their share dealing service
Dividend re-investment with their self-select stocks and shares ISA

mulronie

dollywops wrote: »

We don't want a broker DRIP. What we require, is what we currently subscribe to - all dividends are taken as shares rather than cash, so we constantly build up our holdings in each company we hold shares in.

Tomorrow, I am going to have to start making some telephone calls. Motley Fool appears to offer everything we require:-

Dividend re-investment with their share dealing accont
Transferring paper certificates to their share dealing service
Dividend re-investment with their self-select stocks and shares ISA

Be careful that it is what you want.

DRIP with online brokers typically means that they will take whatever dividend you receive, and buy shares in the market at that day's price, less a fee (2% capped at £10 at Motley Fool) and Stamp Duty.

DRIP on certificate holdings is the same concept, the fee depends on the company.

SCRIP is the best for dividend reinvestment - no stamp duty, no dealing cost, you get sent new shares instead of dividends. This is only available on certificated holdings (at least, I don't know of any online brokers that can facilitate it).

So... if you are enjoying SCRIP dividends on any stock, my advice would be to not dematerialise them. Otherwise, weigh up whether broker DRIP is better than registrar DRIP for a particular stock.

barak

dollywops wrote: »

We don't want a broker DRIP. What we require, is what we currently subscribe to - all dividends are taken as shares rather than cash, so we constantly build up our holdings in each company we hold shares in.....

Dividend re-investment with their share dealing account
Transferring paper certificates to their share dealing service
Dividend re-investment with their self-select stocks and shares ISA

That is precisely what Halifax Share Dealing, for instance, provides.

What do you think is missing? :question:

[Edit].... and as an example, my recent dividend from City of London Investment Trust PLC was reinvested for £131.07 including £2.56 commission plus £0.64 Stamp Duty.

Shaolin_Monkey

Barclays Stockbrokers have the option to receive Scrip dividends if available - https://help.stockbrokers.barclays.co.uk/help/event-processing/take-scrip-dividends/

dewdneyk

We have these shares from a merger or something - didn't buy them. Now we've got the option to join the Scrip Dividend Programme or to continue to receive dividends (currently worth about £100 a year). Which is the best option?

Thanks

bigfreddiel

most online brokers have a divi reinvestment option - i use td direct investing - costs £1.50 + SD for each reinvestment - portfolio has been building nicely over the last 10+ years