Share dealing with Divi reinvest

[Sir Bagalot]

We prefer to take shares rather than cash for Divis.

Most of our shares we have in Cert form due to the selftrade fallout. Many firms run DRIP/SCRIP, some are free whilst others charge a fee.

Recently bought shares are held in our Halifax SD account who reinvest the Divis in buying more shares but charge 2% commission for this.

What share dealing sites have 1/ reasonable charges for trading and 2/ Charge less than 2% for Divi reinvestment?

Thanks

[ellroy]

Barclays Stockbrokers are pretty darn cheap if you're looking at online.

[costsmonkey]

Like you, I prefer to take shares rather than cash dividends.

I have been using Barclays Stockbrokers for some time now and find them very good and not expensive for online transations.

[Slowped]

I could do reinvestment and trading for you at 1%, min £17.50. Stock would need to be in my firm's nominee facility obviously.

[afrochicken]

Barclays Stockbrokers charge 1%, min £1 max £7.50 for automatic dividend reinvestment.

[sjt85]

Thanks for headsup - I hadn't noticed Halifax sneaking the charge from 1% to 2%. It is still capped at £11.95 (i.e. an ordinary trade) though.

Wouldn't it be best to consider how many lines of stock you're transferring between brokers as the transfer will incur charges of ~£10 per line.

The cost of this upfront may erode any benefits saved from 1% less taken from dividends?

[bogie]

I dont have mine set to automatic ...you can soon end up with hundreds of pounds of extra charges per year for relatively small buys

I dont want to pay a tenner to buy £200 of shares with dividends

I usually wait until the dividends are in £1K or more in my account before I choose what to buy at a particular time

just my way of minimising charges, if your dividends are into the many thousands per year, I guess a £7 or £10 buy every 6 months isnt so much of an issue

[afrochicken]

bogie said:

I dont want to pay a tenner to buy £200 of shares with dividends

As I said above, I'm with Barclays and they only charge 1%. I had an approx £250 dividend the other day, they charged about £2.50 plus stamp duty. Very reasonable and about the same as waiting for the cash to build to £1000 and paying £12.95 plus SDRT

[Sir Bagalot]

Not a huge problem at the moment as my large share holdings (£3K+) I have in certificate form. BP and RSA for example offer the service FOC where as Travis Perkins charge a £2.50 fee.

Barclays have a 1% charge but a min £1, whereas Halifax do charge 2% but have no min charge. When I buy most of my shares they do only tend to be £1-1.5K worth

[bogie]

afrochicken said:

bogie said:

I dont want to pay a tenner to buy £200 of shares with dividends

As I said above, I'm with Barclays and they only charge 1%. I had an approx £250 dividend the other day, they charged about £2.50 plus stamp duty. Very reasonable and about the same as waiting for the cash to build to £1000 and paying £12.95 plus SDRT

thanks for clarifying I just checked and Lloyds are now really running the Halifax platform, and its 2% with a max of £13.50

so not as bad as it used to be, although still twice what Barclays are charging.....