Interactive Brokers: Automatic Dividend Reinvestment for Stocks and ETFs

Interactive Brokers has introduced Automatic Dividend Reinvestment for US and Canadian stocks, allowing clients to reinvest cash dividends into additional shares effortlessly.

Key Points:

• Interactive Brokers allows clients to automatically reinvest cash dividends into US and Canadian stocks and ETFs.
• Clients can easily enroll through the client portal for seamless dividend reinvestment.

Interactive Brokers has announced a significant enhancement to its services. This new feature allows clients to reinvest cash dividends into additional full or fractional shares of eligible US and Canadian stocks. Furthermore, the new feature aims to provide investors a more streamlined way to grow their portfolios through automated dividend reinvestment.

Additionally, clients who opt into the Dividend Reinvestment Program (DRIP) authorize interactive brokers to automatically reinvest or place a standing order with their affiliates in the United States and Canada. This will also apply to dividends earned on certain stocks and exchange-traded funds (ETFs) held in their accounts where the program is available.

Interactive Brokers: Automatic Dividend Reinvestment for Stocks and ETFs

Under the new policy, on the morning following confirmation of dividend payments, Interactive Brokers will utilize these funds—either the cash dividends or cash-in-lieu payments if shares are on loan at the time of the dividend distribution—to purchase additional shares of the respective stock or ETF. This feature simplifies reinvestment and allows investors to benefit from compound growth over time.

Clients with Individual, Joint, Trust, or Small Business Accounts can enroll in the Dividend Reinvestment Program straightforwardly. Advisors, brokers, and prop trading limit clients can enroll by navigating to the Dashboard > Contacts tab in the client portal. By clicking on the Information “I” icon for their desired account, they can access the Client Account Details page and enable dividend reinvestment by clicking the Edit link in the Account Configuration section.

This latest initiative reflects Interactive Brokers‘ commitment to enhancing user experience and providing tools that support investors in achieving their financial goals. By making it easier for clients to reinvest dividends, the firm positions itself as a frontrunner in the competitive online trading landscape.

Clients are encouraged to visit the Interactive Brokers website or contact customer support for further details on enrollment and eligibility.

Also, visit the Stock Broker Talks website for more insights and Reviews.