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Brokers For No-Fee Dividend Reinvesting (DRIP) in 2026
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Best Brokers for DRIP Investing
Rather than leaving dividend payments in cash, many online discount brokers provide a
Dividend Reinvestment Plan (DRIP) that automatically applies the distributions toward additional whole or fractional
shares of the stocks or ETFs that issued them. Firstrade, Robinhood, and Charles Schwab are
three of the strongest brokerage firms for reinvesting dividends.
Robinhood DRIP Program
Robinhood provides its DRIP service at no cost for eligible dividend-paying stocks and ETFs that support fractional shares. Enabling the program and selecting which holdings should have their dividends reinvested is straightforward. Click the Account link in the upper-right corner of the website. From the menu that opens, choose Settings. On the following screen, click Investing in the menu on the left. The dividend reinvestment option will then appear. Select it to configure the account’s DRIP preferences.
A toggle controls whether DRIP is enabled or disabled for the account. When it is switched off, dividends from all holdings are deposited as cash. Switching it on activates the program and allows you to choose the individual eligible securities for which cash dividends should be reinvested.
To stop reinvesting dividends from a particular stock or ETF, remove the check mark beside that holding in the DRIP settings on the Investing page described above. Dividends from the other selected securities will continue to be reinvested.
Should you decide to resume reinvestment later, check the security again to reactivate DRIP for that stock or ETF.
After DRIP has been enabled for an eligible holding, future qualifying cash dividends generally are not retained in the account as cash. Robinhood instead applies the distribution toward additional whole or fractional shares of the same investment.
Robinhood limits DRIP eligibility to dividend-paying stocks and ETFs that also qualify for fractional-share trading. A security that currently pays no dividend will not produce reinvestment transactions unless it begins issuing dividends and continues to meet the program’s eligibility requirements.
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One distinction at Firstrade is its availability of mutual funds. When placing a mutual fund trade, investors can specify how future dividends and capital-gains distributions should be treated. The trade ticket provides a radio button for making this selection. Firstrade does not permit dividends and capital gains to be handled separately. Both distributions must either be reinvested or paid in cash.
Enrollment works somewhat differently for stocks and ETFs. Begin by opening the Positions page on Firstrade’s website. You can reach this area by selecting Accounts followed by Positions.
A dividend-reinvestment link appears near the top of the Positions page. Select this link to access the DRIP controls. The page displays the stocks and ETFs currently held in the account. Investors can filter the list according to enrollment status, making it easy to identify which positions are participating in DRIP and which are receiving dividends in cash.
Firstrade allows customers to enroll selected holdings or every eligible security in the account. Marginable U.S. equities priced above $4 per share and selected foreign securities are eligible. When the distribution is too small to purchase a full share, Firstrade credits the account with a fractional share.
Firstrade’s DRIP enrollment instructions become effective on the following business day.
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Schwab brokerage customers can enroll eligible stocks, ETFs, and mutual funds in automatic dividend reinvestment. Whenever a participating stock or ETF distributes a cash dividend, Schwab uses the payment to acquire additional whole or fractional shares of that same security. Investors can also reinvest dividends and capital-gains distributions from mutual funds. Schwab assesses no fee for using its DRIP service.
Schwab does not automatically add securities to dividend reinvestment, and customers cannot enroll or remove every position in an account with one instruction. Each holding must be enrolled individually, although the online process is simple.
Schwab’s trade ticket contains a check box titled Reinvest Dividends. To have future cash distributions from a stock or ETF invested automatically, select this box before submitting the order. If the box is left unchecked, dividend payments will instead enter the brokerage account as cash.
If you do not select the box while placing the trade or decide to change the election later, the DRIP preference can be updated from the Positions page. Open the Accounts tab in the upper menu and choose Positions.
The resulting page displays all investments held in the account. A column titled Reinvest? shows Yes beside positions currently enrolled in DRIP and No beside those that are not participating. Click the applicable link to examine or modify the election for an eligible holding.
For mutual funds, Schwab permits the automatic reinvestment of both dividends and capital-gains distributions. The mutual fund order ticket includes an election specifying how future distributions should be processed.
Charles Schwab does not assess fees or commissions for dividend reinvestment.
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Updated on 8/3/2026.
Chad Morris has been analyzing investment firms for Brokerage-Review.com since 2015. Backed by FINRA Series 65, 66, and SIE credentials, his work reflects a deep knowledge of the retail brokerage industry and digital trading tools.
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