Automatic Share Reinvestment That Isn't19 Apr 2019 01:01
Is anyone else less than impressed with the dividend reinvestment limitations of their share dealing platform? Mine boasts, "Low cost flexible dividend reinvestment where you can choose the level at which your dividends are reinvested."
I have no problem with the 1% (minimum £1) dividend reinvestment commission charged by my platform, which is similar to the rates charged by PLCs that operate dividend reinvestment plans.
What really irks me is that, for technical reasons, far from being reinvested, the majority of the dividend proceeds from my various shareholdings end up being dumped as cash in my capital account. Of course, I could still use this cash to buy shares, but it would then be subject to the full trade transaction fee, rather than the preferential commission rate for automatic share reinvestment.
I have complained, but have been told that this rather clumsy dividend reinvestment model is due to 'system limitations'.