Dividend reinvestment (DRIP)
You can automatically reinvest cash dividend payments back into the underlying stock or ETF with dividend reinvestment (DRIP).
After you enable dividend reinvestment, you’ll see a list of your investments that are eligible for dividend reinvestment. You can choose which investments you’d like to reinvest cash dividends for by selecting the circle or checkmark.
Any dividend-paying stock or ETF that supports fractional shares is eligible for dividend reinvestment.
Because of regulatory rules, there’s typically a waiting period of at least 10 days between when a company announces a dividend (the declaration date”) and when this dividend is actually paid out to shareholders (the “pay date”). Dividends will then be reinvested during market hours (9:30 AM to 4 PM ET) on the trading day after the dividend pay date. Because it typically takes some time to process the reinvestment orders, your dividend may not be reinvested right at market open, but you’ll receive a notification letting you know when it is.
The cutoff to enable or disable dividend reinvestment is 12:00 AM ET on the day the dividend is scheduled to be paid. For example, if you are receiving a dividend on February 5th and you want it reinvested, you need to enable the dividend reinvestment by 12:00 AM ET on February 5th. If you miss this cutoff time, the dividend will be paid out as cash instead of automatically reinvested.
To see all your pending and past dividends and dividend reinvestments:
To see your pending dividends and dividend reinvestments for an individual stock, go to the individual stock detail page. The pending dividends and dividend reinvestments are in Upcoming activity.
Your dividend may not have been reinvested for a variety of reasons, such as:
All investments involve risk and loss of principal is possible. Investors should consider their investment objectives and risks carefully before investing.
Fractional shares are illiquid outside of Robinhood and not transferable. Not all securities on Robinhood are eligible for fractional shares orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Customer Agreement related to fractional shares.
This is not investment advice, a recommendation, an offer to sell, or a solicitation of an offer to buy any security.
Securities trading is offered through Robinhood Financial LLC, a registered broker-dealer and Member SIPC, and a subsidiary of Robinhood Markets, Inc. (“Robinhood”).