We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
iweb automatic dividend reinvestment or payout
Options

sidneyyoungblood
Posts: 55 Forumite

Can anyone give me some advice on the best option for dividends payouts on iweb - it is not a massive amount of around £600 a year but worried it is getting eaten in fees.
Not 100% sure of the costs , it says that I am charged 2% upto a maximum of £5 ... The payouts range from £1 to £100 amounting to around £600 over the year.
I know there is an option to have it paid out rather than the automatic dividend reinvestment but not too sure which is best.
any help would be appreciated.
0
Comments
-
sidneyyoungblood said:
Can anyone give me some advice on the best option for dividends payouts on iweb - it is not a massive amount of around £600 a year but worried it is getting eaten in fees.
Not 100% sure of the costs , it says that I am charged 2% upto a maximum of £5 ... The payouts range from £1 to £100 amounting to around £600 over the year.
I know there is an option to have it paid out rather than the automatic dividend reinvestment but not too sure which is best.
any help would be appreciated.
https://www.iweb-sharedealing.co.uk/charges.html#:~:text=Dividend%2520reinvestment%2520purchases%2520are%2520charged,of%2520%C2%A35%2520per%2520stock.
0 -
sidneyyoungblood said:
Not 100% sure of the costs , it says that I am charged 2% upto a maximum of £5 ... The payouts range from £1 to £100 amounting to around £600 over the year.
I know there is an option to have it paid out rather than the automatic dividend reinvestment but not too sure which is best.
any help would be appreciated.Best option is up to you - it's quite a fee for small reinvestments, so you could always pay out and accumulate them elsewhere and then pay a one-off £5 fee to reinvest the lump rather than each dividend - but you may lose out on time in the market.0 -
I always do reinvestment, cost is small compared to others and in the general scale of things.
Looking at my most recent dividend which was £87, the fee was £1.75 and stamp duty £0.44, total £2.19. The stamp duty will be the same anywhere so it's just the £1.75 you might be able to reduce. When iWeb costs me nothing per year for holding fees I still think it is excellent value for money - paying a small amount for reinvestment seems like a worthwhile thing if it keeps them in business.Remember the saying: if it looks too good to be true it almost certainly is.1 -
I agree with Jim.For 3 figure dividends, a 2% fee may sound harsh (but yet it is typical) whereas in cash terms it's only a few pounds - and capped at £5 ! It really is worth letting them do the work, rather than you dealing with reinvestment of small dividend amounts.(For relatively larger dividends, I personally prefer to have them held in the account so that I can choose my own time (and destination) of reinvestment, and to avoid any price spikes in the market on that particular day).1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.7K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.4K Spending & Discounts
- 243.7K Work, Benefits & Business
- 598.4K Mortgages, Homes & Bills
- 176.8K Life & Family
- 256.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards