Dividend Reinvestment, fractional shares possible?

[Deleted User]

For example an investment trust or etf pays out the dividends. One new share costs £10 but the dividend is only £9.

Is it possible to buy 90% of one share with the £9? Otherwise the £9 will just sit as cash which is not really what I want to happen.

poppy10_2

No, you can't buy fractional shares of an ETF. So as you say any money left over after buying a whole number of shares will be left sitting as cash. A disadvantage of ETFs over investment funds

AnotherJoe

A very minor one, indeed inconsequential.

londoninvestor

Halifax will give you fractional shares when you do a regular investment:
https://www.halifax.co.uk/investing/ways-to-invest/choose-your-own-investments/sharebuilder/

Halifax wrote:

We’ll never leave any leftover cash in the account when you’ve asked us to invest it - this is because we’ll buy a partial share when there isn’t enough cash to buy a full share.

...but it seems like they don't do this for dividend reinvestment:
https://www.halifax.co.uk/sharedealing/help/corporate-events-and-dividends-help/

Halifax wrote:

Why wasn’t my dividend re-invested?

There are a number of reasons that your dividend may not have reinvested:
...
2) Was the dividend over £1.00 in value, and does the dividend total enough to purchase at least 1 share on the stock market?

[Deleted User]

Thanks londoninvestor, it looks like I will just try and buy Acc funds

coyrls

newbinvestor wrote: »

Thanks londoninvestor, it looks like I will just try and buy Acc funds

Funds do allow fractional investments (Acc and Inc).