DRIP Brokers: Best Brokers for Dividend Investing
Choosing a broker that offers DRIP, or dividend reinvestment plans, is key for dividend investors. The best DRIP brokers offer fractional shares and free commissions.
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Our deep, independent analysis of brokers sorts through key account details to find and evaluate the information investors want when choosing a brokerage firm. To see our full methodology and learn more about our process, read our criteria for evaluating brokers and for evaluating robo-advisors.
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Many people opt to invest in dividend stocks (either directly or through funds, like mutual funds or exchange-traded funds) because of the steady stream of income these companies pay. The regular dividend payments offer cash flow, and speed up the process of earning your initial investment back.
But maybe you don't currently need that cash flow — in which case, you might opt to reinvest those dividends. Many online brokers and companies make this easy by offering what's called a DRIP, or dividend reinvestment plan. These plans automatically reinvest dividends back into the stock or fund that paid that dividend. Over time, reinvesting dividends allows you to slowly invest more money by putting those dividends back to work. Dividend reinvestments also reduce the chance of holding idle cash in your brokerage account. (Though some brokers are now paying higher interest rates on idle cash, many are not.)
The brokers below all offer dividend investment plans, or DRIP plans, that automatically reinvest dividends. They also charge no commission, which means you won't pay to purchase those additional shares.
Note: Many public companies offer direct investment into DRIP plans without the use of a brokerage account, sometimes at a discount compared to the market price per share. It's worth investigating these options, but keep in mind that some charge fees that could wipe out any discount offered. They may also require an investment minimum. (Read more about the pros and cons of company DRIPs.)
Nerdy Tip
Reinvesting your dividends rather than taking them in cash may boost your investment returns over the long term.
DRIP Brokers: Best Brokers for Dividend Investing
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
4.5/5 | $0 per trade | $0 | 1 Free Stock after linking your bank account (stock value range $5.00-$200) | Learn moreLearn more on Robinhood's website | |
4.5/5 | $0 per trade | $0 | Up to $200 in Transfer Fee Rebates | ||
4.8/5 | $0 per online equity trade | $0 | None no promotion available at this time | Learn moreLearn more on Charles Schwab's website | |
5.0/5 | $0 per trade | $0 | None no promotion available at this time | Learn moreLearn more on Interactive Brokers' website | |
4.4/5 | $0 per trade | $0 | None no promotion available at this time | Learn moreLearn more on Vanguard's website |
Fees
$0
per trade
Account minimum
$0
Promotion
1 Free Stock
after linking your bank account (stock value range $5.00-$200)
Fees
$0
per trade
Account minimum
$0
Promotion
Up to $200
in Transfer Fee Rebates
Fees
$0
per online equity trade
Account minimum
$0
Promotion
None
no promotion available at this time
Fees
$0
per trade
Account minimum
$0
Promotion
None
no promotion available at this time
Fees
$0
per trade
Account minimum
$0
Promotion
None
no promotion available at this time
Fees
$0
per trade. Other fees apply.
Account minimum
$0
Promotion
Get up to $1,000
when you open and fund an E*TRADE account
Fees
$0
per trade
Account minimum
$0
Promotion
Get up to $700
when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money.
Fees
$0
per trade
Account minimum
$0
Promotion
Get up to $1,000
in stock when you fund a new account.
Fees
$0
per trade for online U.S. stocks and ETFs
Account minimum
$0
Promotion
None
no promotion available at this time
Fees
$0
per trade
Account minimum
$0
Promotion
None
no promotion available at this time
Fees
$0
per trade (on eligible US securities)
Account minimum
$0
Promotion
None
no promotion available at this time
Last updated on October 1, 2024
Methodology
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We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).
For more details about the categories considered when rating brokers and our process, read our full methodology.