What is a Dividend Reinvestment Plan (DRIP) and how does it work?

DRIP (Dividend Reinvestment Plan) is a feature that allows investors to automatically reinvest the dividends they receive into purchasing additional shares of the same stock or ETF, instead of receiving the dividends as cash.

Which securities are eligible for DRIP?

- You can enable DRIP for stocks and ETFs that support fractional share trading. Securities that support fractional shares will have a green diamond icon displayed on their details page. The minimum reinvestment amount is $1. If the dividend amount received is less than $1 or the total amount available for reinvestment from all of the client's accounts is less than 5 USD, it will not be reinvested and will instead be credited to your brokerage account as cash.

How does DRIP work?

- When a stock you own pays a dividend, the system will automatically use the dividend to purchase additional shares of the same stock on the next business day after the dividend is received, at 10:00 AM (ET), based on the market price at that time.

How to enable DRIP?

1. Go to the “Settings” page and tap on “Manage Brokerage Account.”

2. Select “Dividend Reinvestment Program.”

3. Choose the stock or ETF you want to enable DRIP for, and confirm your selection.

You can disable DRIP at any time by going back to the same settings page and turning it off.