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What is the Dividend Reinvestment Plan?

What is the Dividend Reinvestment Plan?

Updated over 3 weeks ago

The Dividend Reinvestment Plan (DRIP) automatically reinvests dividends received from eligible stocks and ETFs.

  • All Marginable U.S. equities priced above $4.00 per share and selected foreign securities are eligible.

  • If the dividend amount is insufficient for a whole share, fractional shares will be received provided that the security is fractional-trading-enable.

  • The reinvested shares will be purchased at the market price on the dividend pay date.

  • Securities can be set up for DRIP on the day the security is purchased, but dividend reinvestment will not begin until 5 business days after enrollment. Dividends with a record date before this date will not be reinvested.

For example, if stock XYZ was trading at 10 dollars a share and you receive 25 dollars in dividends, 2.5 shares of XYZ will be added to your positions.

How do I enable/remove DRIP in my account?

Access the Dividend Reinvestment page by clicking on “My Accounts -> Positions -> Dividend Reinvestment”.

Enroll in one of two ways:

  • (Option 1) Toggling the switch Enroll account in DRIP will enable or remove dividend reinvestment on all eligible securities in the account.

  • (Option 2) Checking the Edit Enrollment box allows selecting each security to enable or remove from DRIP.

Note: Dividend Reinvestment Plan enrollment requests will take effect within 5 business days.

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