The Dividend Reinvestment Plan (DRIP) is a convenient, easy and cost effective way to build your shareholding by using your cash dividends to buy additional shares.
How does a DRIP work?
It allows shareholders of participating companies to use their cash dividends to buy more shares in their company. Rather than receiving a dividend cheque through the post or having their bank account credited with the dividend payment, shareholders in companies that operate a DRIP can choose to use their cash dividend to buy additional shares.
Whole shares are purchased with any residual money being carried forward and added to the next dividend. However, if the amount of the dividend, less any dealing costs incurred in completing the purchase, is insufficient to buy a single share no charge is made and the dividend is carried forward.
Confirmation of purchase
When you buy shares using a DRIP you will be sent:
- A share purchase advice
- A share certificate
- A tax voucher
The exceptions to the above are where you are a CREST participant or hold your shares in a Corporate Sponsored Nominee, in these cases you will only receive a share purchase advice and a tax voucher. Where you do not have sufficient funds to purchase a full share you will receive a non-entitled advice and a tax voucher
Applying for a DRIP
The companies listed below offer a Dividend Reinvestment Plan (DRIP).
To apply for a DRIP and to read the full terms and conditions, just click on the relevant links next to the company of your choice below. For Scrip terms and conditions please call 0371 384 2268
Lines open 8.30am to 5.30pm (UK time), Monday to Friday (excluding public holidays in England and Wales).
Where the option is available you can select to apply on line. Alternatively, you can also print an application form which should then be completed and returned to the address stated on the form.
If you are a CREST participant, and wish to make or revoke a dividend re-investment request, please follow the CREST elections process found here.