aviva shares /best deal

1956

hi i have aviva shares, they are changing the way they/we can reinvest the dividends back into shares, the old way was fee free,the new way is done by a outside company who now want to charge commission at 0.5% and stamp duty reserve tax @ 0.5% on the market value of the shares purchased, last divided was £ 470.00 and i got 76 shares (with a few pounds over), my question is should i take the cash dividend and buy the shares myself @ £12.50 a trade(self trade etc) or go with the out side company and just keep reinvesting the divided with them?
any thoughts , advise considered
thanks in anticipation
dean.m

RichyRich

I'd go with whichever worked out cheapest.

At 0.5% commission you'd need to receive a dividend of at least £2,500 to make it cheaper to go via Self Trade. Therefore, if the dividend is £2,500 or less, let the outside company invest for you, if it's more than £2,500 go with Self Trade.

This is, of course, assuming you wish to invest your money in Aviva and not in another stock which you think might perform better. If you're thinking of investing in another stock then obviously withdraw your divvi in cash and invest via Self Trade or whoever in whichever stock you choose.