Schwab reinvest dividends

Charles Schwab DRIP: Dividend Reinvestment Program in 2022


Charles Schwab dividend reinvestment plan fee and enrollment. Automatically reinvest in fractional shares. Charles Schwab DRIP program on stocks, ETFs, and mutual funds. Does Charles Schwab offer DRIP for free?


Charles Schwab DRIP Plans


Charles Schwab has a Dividend Reinvestment Plan, also known as a DRIP. On the broker’s user-friendly website, it’s easy to sign up. Read on for the details.


Details on Schwab’s DRIP


Stocks, ETFs, and mutual funds are eligible for dividend reinvesting inside a Schwab brokerage account. Anytime one of these securities makes a distribution of cash, the money will be reinvested as additional shares. This is done on autopilot, so there’s nothing the account holder needs to do, and the broker charges nothing for its DRIP service.


Enrolling in DRIP on Schwab


Securities at Schwab are not automatically enrolled in dividend reinvesting, and unfortunately, an entire account cannot be enrolled or unenrolled. Each security you purchase has to be enrolled, but this is easy to do.

On Schwab’s order ticket, there is a check box labeled Reinvest Dividends. If you want cash distributions for the stock or ETF to be automatically reinvested, make sure you check this box. Otherwise, dividends will be sent as cash to the brokerage account’s core position.


DRIP on Charles Schwab


If you forget to check the box or later change your mind, you can always sign up for DRIP on the positions page. This will be found by hovering over the Accounts tab in the top menu and then selecting the Positions link.

On the page that appears, you’ll see a list of all the investments in the account. One of the columns is a “Reinvest?” link. For each holding, there will be a Yes link in the column if the security has been enrolled in dividend reinvesting. The link will display a No if it hasn’t been enrolled. Just click on the link to change the current setting.

Mutual funds in this column will have a second link for capital gains distributions. As with stocks and exchange-traded funds, the order ticket for mutual funds has a setting for cash distributions.


Competitors With DRIP


Broker Review Promotion
Offer
Stock/ETF
Commission
Mutual Fund
Commission
Maintenance
Fee
Annual IRA
Fee
M1 Finance Get $10 cash bonus for $100 deposit at M1 Finance. $0 na $0 $0
Ally Invest $0 commissions + $75 transfer fee credit at Ally Invest. $0 $9.95 $0 $0
TD Ameritrade $0 commissions + transfer fee reimbursement. $0 $49.99 ($0 to sell) $0 $0


Many brokers offer dividend reinvestment plans. Like Schwab, they usually don’t charge for the service.

For online brokerage firms that offer better dividend reinvestment plans, take a look at Brokers with DRIP article.


Charles Schwab Dividend Reinvestment Fee


Charles Schwab does not charge fees or commissions for its dividend reinvestment plans.


Investment Income


Another great resource at Schwab for income investors is the Investment Income page. The link will be found under the Accounts tab on the website.

The page has extensive details on the income an account has earned. Examples include:

- Estimated investment income for the current year
- Average monthly investment income for the current year
- Estimated remaining income
- Breakdown of dividends and interest payments
- Income from previous year
- Graphical view


Dividend History


Stocks and funds that pay dividends will display details on Schwab’s website for these payments. On a security’s profile, look for the Dividends tab (for stocks and ETFs) or the Distributions tab (for mutual funds) in the top horizontal menu. Clicking on either will generate a page with information on previous payments. Schwab summarizes these data points in graphical format, which makes interpreting the information easier.

Updated on 3/25/2022.


About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.