AJ Bell dividend reinvestment - charges reasonable?

itm2

I had an email this morning advising me that AJ Bell/Youinvest are now offering a dividend reinvestment service. The charge for each dividend reinvested is 1% (minimum charge £1.50 maximum £9.95). What do people think of this charge - is it reasonable?

masonic

It really depends on how many holdings you have. It is good value if you have just the one, but if you have 30 it could get quite expensive - especially if each dividend payment is a few pounds. Weigh it up against using the regular investing service to passively rebalance into whatever holding is most underweight every month or every few months.

dunstonh

itm2 wrote: »

I had an email this morning advising me that AJ Bell/Youinvest are now offering a dividend reinvestment service. The charge for each dividend reinvested is 1% (minimum charge £1.50 maximum £9.95). What do people think of this charge - is it reasonable?

It seems reasonable if you are on a charging structure that is not "all in". Whether it is better than all in charging depends on what you are investing in.