How do I opt for dividend reinvestment?

You can opt in or out by completing a simple DRP form and returning it to the share registry and you can also change your preferences online through the share registry website.

Should I opt for dividend reinvestment?

As long as a company continues to thrive and your portfolio is well-balanced, reinvesting dividends will benefit you more than taking the cash. But when a company is struggling or when your portfolio becomes unbalanced, taking the cash and investing the money elsewhere may make more sense.

How do I enable dividend reinvestment on Robinhood?

Dividend Reinvestment (DRIP)

1. Go to the Account tab (person icon)
2. Tap Investing.
3. Scroll to Dividend Reinvestment section.
4. Tap Enable Dividend Reinvestment.
5. Toggle the switch on.
6. If prompted, complete the onboarding process.

What stock price is used for dividend reinvestment?

The price paid for the shares through the dividend reinvestment is determined by an average costs of the share price over the given time. This way, an investor will not pay the highest or the lowest price for the shares.

How do dividend reinvestment plans work?

Dividend reinvestment is when you own stock in a company that pays dividends, and you choose to have those dividends reinvested, rather than receiving the dividends as cash. Many companies pay out dividends to their stockholders. When you reinvest your dividends, you use those payments to buy more company stock.

Do you pay tax on dividend reinvestment?

Any dividend applied to acquire shares under the dividend reinvestment plan forms part of your Australian taxable income. The dividend may also be fully or party franked under Australia’s dividend imputation system. Any franking credits attached to the dividend normally form part of your Australian taxable income.