Dividend Reinvestment Plan (DRP) versurs manually reinvesting: which option is cheaper?

Hi Isabella,

It depends how you do it.

If you take the dividends in cash and then reinvest by buying more shares as a separate transaction, then you will pay brokerage for that.

But if you take the dividends in cash and simply use it towards your next investment and combine it with your regular savings, then it makes no difference – you were going to pay brokerage on the next purchase anyway. So it’s the same in that regard, no cheaper or more expensive than DRP.

I personally just take the cash and put it towards my next purchase, but either method is fine.

Cheers, Dave

Great points Dave, Just to add, our Automate tool has some pretty powerful ways to track and allocate your dividends too – so you can add your unique Pearler account at the share registry and through certain references, it tells us where you want the cash to be stored or used towards your next purchase. No more manually logging in to transfer random amounts 😀