ETrade reinvest dividends

E*Trade DRIP: Dividend Reinvestment in 2022

E*Trade dividend reinvestment program fee, requirements, and enrollment. E*Trade DRIP plan enrollment for automatic dividend reinvestment of stocks, mutual funds, ETFs, and ADRs. Is it free?

E*Trade DRIP Plans

E*Trade offers its clients a free Dividend Reinvestment Plan, also called a DRIP. It will take cash dividends from a stock or ETF and purchase shares of the security at market price. This will create a fractional share, which will be added to the existing position. A single security can be enrolled in the broker’s DRIP service, or an entire account. There is no commission charged when fractional shares are added to a position.

E*Trade DRIP Requirements

E*Trade’s DRIP service has a few policies. First, a security must have a market price of $5 or higher to be enrolled. Of course, the stock or ETF must be in an E*Trade brokerage account, and it must also be currently paying a dividend.


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E*Trade DRIP Fees

Broker does not charge fees or commissions to use its automatic E*Trade dividend reinvestment plans.

Fractional Shares

If you have a fractional share in an equity position, and sell all whole shares, the fractional share cannot be liquidated. E*Trade will exchange the fractional share for cash on the following business day at the same price that the whole shares were sold for. Technically, there is no such thing as a fractional share. It is an accounting service that a broker offers its clients.

Competitors With DRIP

Broker Review Promotion
Mutual Fund
Annual IRA
M1 Finance Get $10 cash bonus for $100 deposit at M1 Finance. $0 na $0 $0
Ally Invest Up to $3,000 cash bonus + $0 commission trades. $0 $9.95 $0 $0
TD Ameritrade $0 commissions + transfer fee reimbursement. $0 $49.99 ($0 to sell) $0 $0

How to Reinvest Dividends on E*Trade

To enroll an equity in the broker’s DRIP service, you must submit a form. This can be downloaded as a pdf document; alternatively, E*Trade offers it as an on-line form. To locate it, you can go to without logging in. If you’re logged in, just point your browser to ‘Account’ and then select ‘Documents.’ Next, scroll down to ‘Deposits and Withdrawals’ and choose ‘More.’ Finally, there will be a DRIP enrollment form, which will also allow you to unenroll if you wish. The form is available in both hard-copy and electronic forms. It takes the broker up to five business days to complete an enrollment.

Enrolling with a PDF Document

The pdf document can be filled out by hand, or information can be entered by typing. After completing all required fields, the document needs to be printed out. Finally, you must mail or fax it to the broker. E*Trade’s fax number is toll-free (1-866-650-0003).

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On-line Enrollment

The easiest way to sign up for the broker’s DRIP service is to use its on-line enrollment form. The link for this method is right next to the link for the pdf document. Clicking on the on-line link produces a web page with a multi-step enrollment service.

In the top-right corner, the broker provides links to informational pages that discuss DRIP services. These would be helpful if you’re unfamiliar with the DRIP system in general or at E*Trade specifically.

The on-line forms allow for enrollment or withdrawal from the broker’s dividend reinvestment plan. There is a link to ‘check all’ if you want to enroll all securities. Alternatively, a single stock or ETF can be selected.

The broker notes that it only takes two business days for a security to be enrolled using the on-line form.

E*Trade Overview

Covering a wide spectrum of investing choices, E*Trade offers you an ability to capitalize and trade in:

  • Portfolios administered by E*Trade’s own management company
  • IRA accounts, both traditional and Roth
  • Over 8,000 mutual funds to chose from
  • 30,000 plus interest bearing securities (bonds) to select from
  • Stocks and options

ETF traders will find great resources at E*Trade. With all exchange-traded funds that are free to trade, the broker also provides good research and educational tools on ETFs and other securities. These resources include screeners, videos, webinars, and articles. Beginning investors will benefit from the learning materials on the E*Trade website. Retirement savers will also enjoy the firm's IRA resources, which include more than 10 IRA account types, one of the largest selections in the industry.

E*Trade offers dividend reinvestment plans for stocks. However, only stocks that are currently trading above $5 per share are eligible for DRIP. At this time approximately 6,000 securities can be used in dividend reinvestment program at the broker.

ADRs, unfortunately, are not eligible for DRIPs at E*Trade.

Etrade dividend reinvestment program

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, Chad can usually be found managing his portfolio or building a new home computer.