Best platform for dividend investing (DRIP). Best brokerage accounts for dividend reinvestment: Etrade, Fidelity, Schwab, IBKR, Ally, Firstrade and others.

Firstrade - Best Broker For DRIPs

Firstrade rating

Firstrade offers investors a convenient Dividend Reinvestment Plan (DRIP) that allows them to convert cash distributions into additional shares of the securities that generate those dividends. Whether it's a single stock or an entire account, investors can easily enroll in this plan without any sign-up charges. What's even better is that Firstrade doesn't impose any commissions when purchasing additional shares using dividends.

To be eligible for Firstrade's DRIP, a stock or ETF must have a market price of $4.00 or higher and be marginable, meaning it can be borrowed against. However, not all securities meet these criteria. Examples are recent IPOs and Bulletin Board stocks, which are not considered marginable under U.S. securities regulations.


best platform for dividend investing


It's worth noting that some foreign stocks can participate in Firstrade's DRIP. To receive shares of a foreign security instead of cash, investors must purchase the equity and settle the trade by the dividend record date.

Thanks to its excellent DRIP policy and the absence of commissions on most investment products, Firstrade has earned the title of the Best Broker for Dividend Investing in 2024.

Fractional shares: Yes.

Review: Firstrade Review

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M1 Finance - Best Broker For DRIPs

4-star brokerage firm rating

M1 Finance offers a unique alternative to a traditional Dividend Reinvestment Plan known as auto-invest. When the cash balance in an account reaches $10, M1 Finance's auto-invest feature automatically invests the free cash balance into Pies.


best broker for dividend investing


A Pie refers to a collection of investments, which can include stocks, ETFs, or a combination of both. M1 Finance creates its own Pies, and customers of the brokerage can also create their own. When cash is invested in a Pie, whether from a dividend or a deposit, the funds are allocated based on target percentages.

For instance, let's consider a Pie with 20% invested in ExxonMobil, 50% in an S&P 500 ETF, and the remaining 30% invested in Facebook. If there is a $100 cash deposit, it would be invested according to those ratios: $20 in ExxonMobil, $50 in the S&P 500 ETF, and $30 in Facebook.

One advantage of M1 Finance's approach is that their Pies allow investment in fractional shares of securities, enabling investors to invest whole-dollar amounts in stocks and funds.

Thanks to its auto-invest feature and the absence of commissions on all investment products, M1 Finance has been recognized as the Top Broker for Dividend Reinvestment Plan in 2024.

Fractional shares: Yes.

Review: M1 Finance Review

Promotion: Make a $10,000 deposit and get a $250 cash bonus at M1 Finance.

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Charles Schwab Dividend Reinvestment Plan

Charles Schwab rating

Charles Schwab also offers a Dividend Reinvestment Plan to its traders, allowing them to reinvest stock and mutual fund dividends into the respective securities rather than receiving cash payments. You can find a helpful page dedicated to the broker's DRIP service on their website. Simply type "dividend reinvestment" in the search field located in the upper-right corner of the site, or navigate to the "Products" section in the top menu and select "Stocks." From there, you will see a page titled "Dividend Reinvestment" in the left-hand column.

Charles Schwab's DRIP service extends to ETFs as well, and it allows distributions from mutual funds to be reinvested as shares in the fund, rather than being deposited as cash into the account's core position.

Fractional shares: Yes.

Review: Charles Schwab Review

Promotion: Get up to a $2,500 cash bonus from Charles Schwab.

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E*Trade Dividend Reinvestment Plan

Etrade brokerage firm rating

E*Trade provides a Dividend Reinvestment Plan (DRIP) service with certain restrictions. To be enrolled in the DRIP service, a security must have a market price of $5 or higher, be held in an E*Trade brokerage account, and currently pay a dividend.

To enroll a particular equity in E*Trade's DRIP service, you need to submit a form. This form can be obtained as a downloadable PDF document or filled out online. To find it, you can visit us.etrade.com/forms-applications without logging into your account. Alternatively, when logged in, navigate to the 'Account' section, select 'Documents,' scroll down to 'Deposits and Withdrawals,' click on 'More,' and you will find the DRIP enrollment form. This form allows for both enrollment and unenrollment. It is available in both hard-copy and electronic formats. E*Trade takes up to five business days to process an enrollment request.

Fractional shares: Yes.

Review: E*Trade Review




Merrill Edge/Lynch DRIP

3.5-star brokerage firm rating

Merrill Edge provides investors with the flexibility to choose whether to reinvest dividends and capital gains, or receive them as cash, for both stocks and ETFs. When it comes to mutual funds, investors can either reinvest dividends and capital gains or opt to reinvest capital gains only. Alternatively, they can elect to receive cash payments.

To enroll in Merrill Edge's dividend reinvestment plan, simply get in touch with a representative from the Merrill Edge Investment Center.

Fractional shares: Yes.

Review: Merrill Edge Review




JP Morgan Dividend Reinvestment Plan

3-star brokerage firm rating

J.P. Morgan offers a free Dividend Reinvestment Plan, allowing investors to reinvest cash distributions as additional shares in ETFs and stocks. However, penny stocks are not eligible for the DRIP service, as Chase does not permit their trading.

There is no specific minimum trading price requirement for ETFs or stocks to be eligible for the DRIP service. However, some esoteric equities may have exceptions.

Fractional shares: Yes.

Review: Chase Investing Review




T. Rowe Price Dividend Reinvestment Plan

3-star brokerage firm rating

The Dividend Reinvestment Service is available for most securities listed on the New York Stock Exchange, American Stock Exchange, or traded on the NASDAQ system. However, non-listed foreign securities, nonpublicly traded limited partnerships, preferred issues, and short positions are not eligible for this service.

Enrollment in the Dividend Reinvestment Service becomes effective on the first business day after an investor chooses to enroll and the broker receives the account application.

Fractional shares: Yes.

Reviews: T. Rowe Price Review




Vanguard Dividend Reinvestment Program

Vanguard brokerage company rating

Vanguard offers the Dividend Reinvestment Program, which covers eligible stocks, closed-end mutual funds, ETFs, FundAccess® funds, and Vanguard mutual funds.

Enrollment in the Dividend Reinvestment Program can be completed over the phone or by accessing your account on vanguard.com.

Fractional shares: Yes.

Review: Vanguard Review


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