If you are new to investing and want to participate in your holdings Dividend or Distribution Reinvestment Plan (DRP) then this post is for you.
When I first dipped my feet into investing I had absolutely no idea how to do anything. Taking the step to buy my first ETFs (Exchange Traded Funds) in the first place took me long enough. Once I bought my first ETF units I wanted to participate in the holdings DRP, and have my income automatically invested in buying more ETF units.
If you don’t know what a DRP is that is 110% okay. I’ve got a really quick write up on what a DRP is, and why I’m a big fan right here ‘What is a Dividend (or Distribution) Reinvestment Plan’.
Do you have a Computershare Account?
When you purchased your first shares you may have been sent information from your broker recommending you to register your shares via an online Share Registry Company. This may be via a company named Computershare or via another online Share Registry Company (there are quite a few out there including Link Market Services).
Your broker may have even set up an account already for you – so double check your emails.
You will need to have a Computershare Account or other Share Registry Company Account to set up your DRP.
What is Share Registry Companies like Computershare?
Share Registry Companies like Computershare and Link Market Services provide share registration services including transfer of shares, tax reports, dividend/ distribution income reports, and the ability to update how and where you would like your income to be paid.
How to opt into the DRP?
Opting into a DRP is quite straight forward once you’ve set up your Share Registry Account.
Below I’ve detailed how to opt in to DRP via your Computershare Account
(Please Note: The process will be slightly different for other Share Registry Accounts).
- Simply log onto your Computershare Account
- Select My Profile from the top right menu (see screenshot below)
- Then select the share holding you want to update the dividend/distribution reinvestment plan for (see screenshot below)
- A sub menu will then pop up. Select Amend and then follow the prompts to make your desired selection.
- Once you’ve made your selection make sure it’s saved correctly, and then pop your feet up and congratulate yourself for a job well done.
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