DRIP - Dividend Reinvestment Plan

Hi traders!
I know this is a common topic in the community, but I feel we haven’t really got deep into it.
We talked about getting this feature within a release a few months ago. This was probably Pies what was referred to.
Although Pies are amazing, I truly love them, I can’t really think of DRIP when talking about pies. It’s half DRIP let’s say imo…
I’d love to see a DRIP option in individual stocks as like Robinhood does. This would help us so much as dividend investors as I have to manually be adding those earning each time I get paid which is so annoying…

Anyone else feeling my pain here?

4 Likes

Yes as someone who doesn’t invest automatically using pies (I use them to group only) I would love this. As I want to DRIP all dividends.

1 Like

Afaik in terms of use there is the feature mentioned.

21. Dividend Reinvestment

21.1. We allow for dividends on stocks in your account to be reinvested and it can be done automatically if you instruct us to do so. Dividends on stocks will only be reinvested in the same stock where the dividend originated from. Instructions to reinvest dividends will not be carried out if your account has been suspended or restricted by us in accordance with this agreement.

Source:

https://www.trading212.com/en/client-agreement-st

1 Like

Do you know how to activate it?

Well my guess, reach either info@trading212 or support and “instruct” them to do so.

1 Like

This is amazing, didn’t know about it.
I’ll send them a message and will update this thread once I know more.

Thanks for the info mate.

2 Likes

@joseaay any updates on this feature?
With the introduction of the FX conversion fee, I believe it could be a great opportunity to avoid the fee on each dividend payment.

I sent them an email, never got an answer unfortunately…

1 Like

I was able to open a chat with customer service to find out what’s happening with that article.
They told me that article is referring to autoinvest feature within PIES. I said that it doesn’t make any sense as they clearly say in the article:

“We allow for dividends on stocks in your account to be reinvested and it can be done automatically if you instruct us to do so.”

I don’t even have to instruct Trading212 to be able to autoinvest in PIES so they are clearly talking about manually added funds. But I kept receiving the same feedback: “They don’t have that option available and the only way of doing that is through the PIES”.

I feel kinda fool tbh, feels quite dodgy all that whole 21 Article…

If you wish that the dividends of a particular company you are holding are reinvested in itself fully, the option would be to create a Pie, put only this one stock in it and activate DRIP. Then the received dividend will be allocated to the Pie and reinvested in the stock once the Pie’s threshold is reached.

Yeap, but I still have not understood what the Article 21.1 of the clients agreement is there for plus, the main reason I don’t use PIEs that often is because there’s no way I can setup my PIEs to be funded via my account’s balance. I have to use a payment method which will incur on a 0.7% fee after reaching £2000.
I use Trading212 because was promised and sold to be a 100% free brokerage but every step of my journey with T212 is being faced with a new type of fee… :man_facepalming:

2 Likes

Hi, your suggested ‘work around’ would do the required but could imagine getting messy with many pies with just one stockholding. Was that an intended use of pies? It would be more logical to have an option (blanket) you can set so true DRIP takes place on all dividends stocks. Maybe/also include an option on each stock allowing selective deactivation of DRIP on an individual stock. Leave pies to act as a convenient collator. Thanks.

DRIP outside of Pies is not something that is currently developed. Nevertheless, we will keep you posted if there are any changes.