Reinvesting Dividends

[JOC]

Does anyone know if is possible to use your trading account to receive dividend payments?

Familiar with the usual system...where dividends are paid into the shareholders savings account.

 

Reason for asking...I have a friend, who receives dividends 18 times yearly...she doesn't need the money and want to reinvest.

So instead of transferring from savings account to trading account 18 times a year, is it possible to get the money straight into the trading account?

 

Thanks

[saakura]

Interesting question for which i have no answer. But good to see how you so confidently state that 'my friend receives dividends 18 times a year and she does not need it'..... as they are not guaranteed like interest payments on FD.

[JOC]

36 minutes ago, saakura said:

Interesting question for which i have no answer. But good to see how you so confidently state that 'my friend receives dividends 18 times a year and she does not need it'..... as they are not guaranteed like interest payments on FD.

It is really very simple...She holds 5 different infrastructure funds...all with a good dividend history

4 pays dividends quarterly  + 1 every 6 months = 18  payments yearly..

By reinvesting the dividends straight away, she will add 0.95% on top of already good dividends...

[KittenKong]

Does anyone know if is possible to use your trading account to receive dividend payments?

My UK one does by default, and they charge a very small fee for reinvesting dividends. But as you dont say which country your trading account is in it's hard to know whether the same would apply in your case.

Another option might be to buy accumulating funds/ETFs rather than distributing ones.

[Langsuan Man]

10 hours ago, JOC said:

So instead of transferring from savings account to trading account 18 times a year, is it possible to get the money straight into the trading account?

Depends if the "brokerage" she uses is affiliated with a bank

 

In the US,  most large brokerage firms now have a banking arm.  Schwab and Fidelity being the most well known so what she wants would be easy and automatic if she had accounts in the US 

 

But as previously stated,  unless we have more information about the specifics of her accounts we are just guessing 

[JOC]

28 minutes ago, Langsuan Man said:

Depends if the "brokerage" she uses is affiliated with a bank

 

In the US,  most large brokerage firms now have a banking arm.  Schwab and Fidelity being the most well known so what she wants would be easy and automatic if she had accounts in the US 

 

But as previously stated,  unless we have more information about the specifics of her accounts we are just guessing 

Kasikorn Securities

[Langsuan Man]

Their web site seems to make it pretty easy to "sweep funds" into a brokerage account, check with a broker:

 

https://www2.kasikornsecurities.com/ksec/page-content.aspx?mmid=9&smid=30

[wordchild]

Many companies offer to do this on behalf of their investors, as a shareholder in eg HSBC you can elect to receive your dividends in extra shares rather than cash. It is usually termed as receiving a “scrip dividend “ . Not all companies offer this so need to check.

[IsaanFam]

No, it will not possible because some of the companies do not even transfers money, they send cheques.