Reinvesting dividends

[aparoid89]

By stockbroker offers an option to reinvest dividends rather than giving it out as cash. Does this cost the £12 fee that it takes to buy a stock in the first place or is it free of charge?

 

[Mornington Crescent]

why dont you ask him ?

he probably just means putting the money in your account instead sending you the dividend

I doubt he means that you should buy one and a half shares in XYZ plc

 

[aparoid89]

why dont you ask him ?

he probably just means putting the money in your account instead sending you the dividend

I doubt he means that you should buy one and a half shares in XYZ plc

My broker is the rather faceless barclays stockbrokers which i've never tried contacting before, i've only used the online interface. I'm pretty sure it means buying the stocks again, since currently i've ticked the option which allows the money to go into my account.

 

[james1989]

By stockbroker offers an option to reinvest dividends rather than giving it out as cash. Does this cost the £12 fee that it takes to buy a stock in the first place or is it free of charge?

Firstly you may want to choose a cheaper broker, you can compare costs at moneysupermarket.com/shares

Dividend reinvestment is a great way to compound your returns over the long term.

You can find the cost at the following link -

https://help.stockbrokers.barclays.co.uk/help/event-processing/how_much_does_it_cost

Kind Regards