Free Dividend Reinvestment Plan
Sign up for Firstrade's free Dividend Reinvestment Plan (DRIP) and automatically accumulate your positions every time you receive a dividend! You can enroll either a single eligible stock or all eligible stocks in your portfolio. Enjoy the benefits of compounding returns on your investment without having to place an order, pay a commission, or even purchase a round number of shares.
- All Marginable U.S. equities priced above $4.00 per share and selected foreign securities are eligible.
- If the dividend amount is insufficient for a share, fractional shares will be received.
- The reinvested shares will be purchased at the market price on the diviend payment date.
- Accounts can be set up for dividend reinvestment on the day the security is purchased, but in order to receive the reinvestment for an upcoming dividend, trades must settle by the record date.
Accumulating additional shares with ease of mind
When you receive dividends from a stock in your portfolio, our system will automatically purchase additional shares of the stock for you using the dividend amount. For example, if stock XYZ was trading at 10 dollars a share and you receive 25 dollars in dividends, 2.5 shares of XYZ will be added to your positions. DRIP investing allows you to accumulate shares for compounding returns without having to place an order or worry about commissions.
Enroll/Un-Enroll your holdings in Firstrade's Dividend Reinvestment Plan
Access the Dividend Reinvestment page by clicking on "My Accounts -> DRIP". Once you enter your basic contact information for verification, you can choose one of two options. Option 1 codes your account for DRIP investing such that every eligible security in your positions will be enrolled. Option 2 allows you to specify which securities you would like to enroll for DRIP investing, and which securities you would like to remove from the dividend reinvestment plan. Dividend Reinvestment Plan enrollment requests will take effect the following business day.
Closing your position with Fractional Shares
Closing your position with fractional shares can be done easily online. Simply sell all your whole shares and the fractional shares will be automatically sold by the settlement date.