How do I use the dividend reinvestment service?

To use our service, log into your account and navigate to the ‘Dividend reinvestment’ section. From here, you can choose which dividends you want to be automatically reinvested. These will be used to buy more shares in the company that paid them, rather than kept in cash. For each reinvested dividend, we charge £1.50.

How can I tell which investments I have chosen to have dividends reinvested for?

You can turn on dividend reinvestment for one or more specific shares in your portfolio, or for every eligible share in your portfolio now and in the future. For each account you hold, you’ll need to turn on dividend reinvestment separately.

To turn dividend reinvestment on or off for a particular share, just go to the portfolio page and tick the box next to its name. If you’d like to reinvest all eligible dividends, choose ‘Select all’. Once you’ve chosen to automatically reinvest a dividend, a red ‘D’ will appear in your portfolio table under the Dividend reinvestment column (D). You can also turn dividend reinvestment on or off directly from this table. All shares eligible for dividend reinvestment will display a grey ‘D’ – click it to turn on or off.

Once you’ve turned on dividend reinvestment for any or all of your shares, we’ll do the rest. We’ll buy as many whole shares for you as possible with the cash dividend you receive. Any leftover amount will be paid into your account as cash, not carried forward to the next reinvestment.

What investments are included in the dividend reinvestment service?

You need to hold at least one share in the company paying the dividend. You should also check that you don’t have regular withdrawals set up for the same account.

Eligible dividends are those paid by:

• UK listed ordinary shares
• Investment trusts
• ETFs traded in British pounds

Dividend reinvestment isn’t possible for any income you get from international shares, residual shares or funds. If you are looking to reinvest income received from a fund you should consider purchasing the accumulation units in the fund. There are also circumstances where we won’t reinvest your dividend.

Is there a minimum dividend payment for reinvestment?

The dividend received by you must be £10 or more for this to be reinvested. The dividend must also be sufficient to buy at least one share in the company for the reinvestment to take place.

When will you reinvest my dividends using the dividend reinvestment service?

Any dividend reinvestment instructions received by us prior to processing the reinvestments will be reinvested. The processing is normally started at 5.30am on the second working day after the dividend is paid to your account.

Please note that the day we credit your account may be different to the dividend pay date, declared by the company the shares relate to.

The purchase of shares for reinvestment will normally be undertaken within the first hour of trading when the markets open. Transactions will not take place during the initial auction period when the markets first open.

Your account will be credited with the cash for the dividend paid. Where you have elected for dividend reinvestment, the cash will then be used to buy further shares on the second working day after this. If you invest or withdraw the cash prior to the due reinvestment day we will not be able to reinvest the dividends.