Increase the compound growth potential from dividend-paying equity investments.
A Dividend Reinvestment Plan (DRIP) is an easy and automatic way for investors to compound their investment returns by reinvesting dividends earned on their holdings. With a DRIP applied to dividend-paying stocks and exchange-traded funds (ETFs) you own, your cash dividends are reinvested into your portfolio automatically, helping you accumulate additional whole or fractional shares of the same stock or ETF, at no charge.
Invest in mutual funds? You can use a DRIP on those investments, too. Have dividends as well as capital gains distributions automatically reinvested into your fund holdings.
Enrolling in a DRIP is easy, whether you're about to buy shares or already own them.
On your next equity or mutual funds trade on Schwab.com:
Simply check the "Reinvest Dividends" box before submitting your order placed on Schwab.com. Once the trade is executed, any dividends or distributions issued will automatically be reinvested.
On your current holdings and for trades placed on other Schwab platforms:
On the Accounts > Positions page on Schwab.com, look for the "Reinvest?" column to view whether or not a position is enrolled in a DRIP. Click a position's "Yes" or "No" link to review or change your selection for that holding.