Interactive Investor

Dividend reinvestment

Automatically reinvest your dividend payments for only 99p per investment.

Boost your income over time

Dividend reinvestment with interactive investor

Automatically reinvest your dividends for just 99p

Choose popular shares, investment trusts and ETFs

Minimum dividend value for reinvestment is £10

What is dividend reinvestment?

A dividend is a cash amount that some companies pay to shareholders. It is essentially a share of company profits.

If you don’t need the money, using your dividend payments to buy more shares can make a big difference to your returns over time.

We offer a dividend reinvestment service to do this for you automatically at a reduced cost of just 99p per trade.

What dividends can I reinvest?

You can set up automatic dividend reinvestment for a wide range of popular UK shares (including the FTSE 350), investment trusts and ETFs.

The minimum amount per dividend reinvestment is £10.

You can only automatically reinvest dividends that are received in pounds sterling.

Will I still pay tax on reinvested dividends?

There is no tax to pay on dividends in a tax-efficient account, such as a Stocks and Shares ISA or a SIPP.

Dividends in a general Trading Account are subject to tax. However, you can receive up to £2,000 in dividends (2021/22 tax year) before you will have to pay dividend tax.

Other things to consider

  • Dividend reinvestment usually takes up to two business days after the dividend has been paid into your account.
  • Once a reinvestment is complete, you will receive a contract note in your account.
  • Share prices and dividend pay-outs fluctuate over time, and pay-outs and share price rises are not guaranteed. We recommend thinking about this strategy over the long term and we would also encourage investing in a portfolio of shares.
  • The value of your investments and the income derived from them may go down as well as up. You may not get back all the money that you invest.

How do I reinvest my dividend?

Unless specified by you dividend payments will be credited to your account as cash. If you want your dividends to be reinvested, all you need to do is:

1

Log in to your account and select 'dividend reinvestment' from the 'portfolio' menu.

2

Select whether you want reinvestment to apply to all eligible dividend payments, or only for specific stocks.

3

Save your changes.

Please note that automated dividend reinvestment is only available for Trading accounts, ISA, Junior ISA and SIPP accounts and you'll need to change the default preference of each account separately.

Risk Warning: The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial adviser.