Back
Fractional shares?
Dividends & tax
When you reinvest dividends can you get fractional shares with them or do you have to wait until you get enough dividends to purchase a whole share?
1 view
Share
1 like
Gabbi Marsh
Asked on 3 November 2022
Comments (2)
Sign in to add a comment
When dividends are funneled back into a dividend reinvestment plan (DRIP), the received funds are utilized for acquiring extra shares of the company’s stock. In cases where the dividend doesn’t cover the cost of a full share, the fractional portion is generally retained by the plan administrator until it accumulates to a point where a whole share can be purchased.
Reply
0 likes