Read about how SoFi works—and how we can help you reach your financial goals. •   It’s important to keep an eye on investments Get answers to your questions; plus tools, guides, calculators, & more. There are also non Aristocrat companies that offer zero fee DRIPS. About 650 companies currently offer DRIP shares. One way to earn on an investment and then reinvest those earnings for compounding returns is through Dividend Reinvestment Plans, or DRIPs. Also, even if the price of the stock goes down, that means the reinvested dividends can be used to buy more shares. ©2020 Social Finance, Inc. All rights reserved. We develop content that covers a variety of financial topics. Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. •   Purchase fractional shares Dividend reinvestment can be a lucrative option for retirees as long as they have other sources of short-term income. The 1 lakh exemption limit is not applicable here on the dividend that you received. Does dividend reinvestment cover solely regular cash dividends or are special cash dividends reinvestment as well? SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. Although company DRIPs used to be common, fewer than 1,000 companies on the U.S. Stock Exchange currently offer them. We recommend that you review the privacy policy of the site you are entering. SoFi offers its members a dividend reinvestment (DRIP) feature that can be enabled for each Active Invest account the member has at SoFi. Dividends are payments made by corporations to their shareholders. 2750 East Cottonwood Parkway #300 SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. With Ally, you get access to … Shareholders can join formal Dividend Reinvestment Plans offered by the companies they’re invested in. This reinvestment takes place on the dividend payment date. Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. DRIP programs give investors the opportunity to reinvest cash dividends from stocks they own into additional shares or fractional shares of those stocks. Toggle the selection on or off using the SoFi app or check/uncheck the box while on the web. What account types are eligible for dividend reinvestment? SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. Investors can also purchase fractional shares through DRIPS. set you up for success with your money, With equity dividends now attracting dividend distribution tax (DDT) at 10%, the attractiveness of dividend reinvestments could reduce even further. To enable Dividend Reinvestment, go to Account (Person Icon) > Investing > Dividend Reinvestment. SoFi Invest® Links are provided for informational purposes and should not be viewed as an endorsement. "SoFi Invest" is the brand name for brokerage products and services offered through SoFi Securities LLC (SFS) Many people receive their dividend in the form of cash, but it is often minimal for smaller holdings. This could indicate that the company has never provided a dividend or that a dividend is pending. Simply visit the “Manage” option within your account on the app or on the web and select “Dividend reinvesting”. Suppose you invested Rs. What investments are eligible for dividend reinvestment? Shareholders can join formal Dividend Reinvestment Plans offered by the companies they’re invested in. SoFi doesn’t provide tax or legal advice. Dividend Reinvestment Plans (also known as Dividend Reinvestment Programs, or DRIPs) are a great tool for long-term investors. Sometimes, that content may include information about products, features, or services that SoFi does not provide. •   AbbVie (ABB) Investors must still report the dividends as taxable income even though they don’t receive them. Some of the companies that offer DRIPs are: •   Exxon Mobil (XOM) Brokerage accounts can also offer DRIP shares to shareholders—usually for free or a small fee. In value terms, the reinvestment plan is the same as the growth plan since in both the cases the dividends have been reinvested into the fund. The reinvested dividends go towards additional shares of the same stock, and are generally purchased directly from the company. 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