Apologises if this is in the wrong section or has been answered many a time, but I couldnāt find anything in the forums.
Iām new to 212 and have setup an S&S ISA, where Iāll be reinvesting the dividend pay outs. Iām trying to work out. given the fact the companies pay at different times of the month, is it worth having DRIP enabled or wait for a good few months till the pay outs have built up.
Having DRIP enabled for me would trigger more auto reinvestments and more charges. But waiting till they have all paid out for that month, making sure you invest before the ex-date and invest once.
Interested to know what other people do and a ball park figure on their DRIP charges?
Give you an understanding, at the moment I have investments in 9 stocks. Of which only 5 are in a pie, where I investment monthly into. So all 1/4 / monthly div pay outs will be invested into that pie. So really want to understand the charges involved before flicking that switch. Thanks.
Perhaps Iām missing something but I donāt think you pay any fees to reinvest dividends other than the usual foreign exchange, stamp duty and incidental exchange charges where applicable as when buying stocks normally.
Iād just reinvest immediately. I see no benefit of waiting in terms of fees. If the fees were flat, eg Ā£11.99 per trade, it would make sense to hold off until you can invest a higher amount but most that youāll encounter are percentage-based so youāll pay more or less the same either way.
Just wanted to confirm what topher said - there are no additional charges if you have the DRIP enabled, other than the 0.15% FX fee.
In short, upon receiving a dividend, it will be charged with the relevant withholding tax. After that, once the automatic reinvestment happens, you will pay a 0.15% currency conversion fee if the received dividend is in a currency different from the primary currency of your account.
Thanks for the response topher and Momchll. This is all new to me, but slowly understanding how everything works and Iāll be flicking that DRIP switch shortly.
