How To Automatically Reinvest Dividends on Fidelity (Guide)

Fidelity makes it easy to manage how you receive and reinvest Dividends and Capital Gains distributions from your equity and mutual fund investments.

Through the Fidelity platform, investors can easily update their preferences for dividend reinvestment and make changes to a particular position.

Does Fidelity Automatically Reinvest Dividends?

By default Fidelity only reinvests dividends for mutual funds. Dividends from stocks and ETFs will be paid as cash to your account.

However, you can change this setting so that dividends in your Fidelity account automatically get reinvested.

How to Turn On DRIP in Fidelity

If the dividend setting on your Fidelity account is not set to automatic reinvestment, here is what you need to do.

Step 1: Login to your Fidelity.com account.

Step 2: Visit the Dividends and Capital Gains portal.

Step 3: Click on Update to apply new changes to your dividend reinvestment program. You can do this for a specific stock or use the setting for the entire portfolio.

Step 4: Change the setting from “Deposit to Core Account” to “Reinvest in Security.”

How Often Does Fidelity Reinvest My Dividends?

The frequency of dividend payments can vary depending on the stock or ETF in your portfolio.

Some may pay out dividends on a monthly basis, while others distribute them quarterly. Regardless of the frequency, Fidelity will ensure that your dividends are reinvested as soon as they are received.

How Much Does Fidelity Dividend Reinvestment Cost?

Fidelity does not charge a fee for dividend reinvestment. The reinvestment price refers to the actual price at which dividends and capital gains are reinvested.

To sum up, Fidelity’s Dividend Reinvestment Plan is easy to use and free of charge. It automatically reinvests dividends for you as soon as they are received.