Dividend Reinvestment Plan (DRIP)

What is DRIP?

DRIP stands for Dividend Reinvestment Plan. It's a voluntary election that customers can opt-in for cash distributions, such as dividends, to be reinvested into shares. Since a dividend payment may not be enough to purchase a whole share, they can result in fractional shares too.

How do I enroll for DRIP?

Are you looking to reinvest any dividends with DRIP? Before reaching out, your account must have a fully-settled DRIP eligible security to enroll. We cannot preemptively apply DRIP to your account. Please contact our support team (support@tastyworks.com) to enroll for DRIP.

You can apply DRIP on a portfolio or position basis. When DRIP is applied and a dividend is paid, the cash dividend will display in your History tab. The reinvested dividend will appear immediately above the cash dividend as a debit, and reinvested shares will appear on your platform after the dividend payment date. Our clearing firm will reinvest the shares at the average price of shares purchased in the market on the dividend payment date.

You must enable DRIP before the dividend record date to receive dividend reinvestment. There are no additional commissions or fees to enable DRIP.

Example of a DRIP transaction in the History tab on the desktop trading platform.

How are DRIP shares displayed?

Whole and partial shares from a dividend reinvestment will appear on your platform. 

For illustration purpose only: example of DRIP shares with fractionals displayed on the Positions tab.

If you decide to close your entire position, you may only close whole shares and exclude any fractional (decimalized) shares from your closing order. Any residual fractional amount (less than 1) after closing whole shares will convert to cash after two trading days.

If you only received a fractional DRIP share position (quantity less than 1) and wish to close it, you must reach out to support@tastyworks.com to request a fractional share position closure.

How do I know if I enrolled in DRIP?

You can refer to the Portfolio Summary section of your monthly statement to see which positions have DRIP applied. Any positions enrolled in DRIP will list an asterisk (*), as outlined in the screenshot below. For customers with DRIP applied on an account level, you will see an asterisk list for every stock or ETF, even if the underlying does not pay a dividend.

Example of a monthly account statement displaying positions with DRIP enabled.

It is important to note that some underlyings have DRIP automatically applied even if you did not opt-in. Please check with the underlying's investor relation site for more information. If you hold an underlying with DRIP automatically enabled and would like to opt-out, please get in touch with our support desk (support@tastyworks.com).