Dividend reinvestment (DRIP)

You can automatically reinvest cash dividend payments back into the underlying stock or ETF with dividend reinvestment (DRIP).

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How do I get started?

App
  1. Select AccountInvesting
  2. In the Dividend Reinvestment section, select Enable Dividend Reinvestment
  3. Toggle the switch On
  4. If prompted, complete the onboarding process
Web
  1. Select AccountSettings
  2. Select Dividend Reinvestment
  3. Toggle the switch On
  4. If prompted, complete the onboarding process

hc-drip-1

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.

hc-drip-2

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Which investments are eligible for dividend reinvestment?

Any dividend-paying stock or ETF that supports fractional shares is eligible for dividend reinvestment.

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When will my dividend be reinvested?

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.

Note

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.

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How do I see my pending and past dividend reinvestments?

To see all your pending and past dividends and dividend reinvestments:

App
  1. Select Account
  2. Select Statements & History
Web
  1. Select Account
  2. Select History

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.

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Why was my dividend not reinvested?

Your dividend may not have been reinvested for a variety of reasons, such as:

  • The equity is no longer eligible for dividend reinvestment
  • The dividend was voided or reversed
  • The market is closed, so the dividend should be reinvested on the next trading day
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Disclosures

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”).

Reference No. 2350407
Still have questions? Contact Robinhood Support