In general, accounts enrolled in the DRIP will have dividends reinvested. Should the funds held in the account be insufficient to purchase a full share of stock, no reinvestment will take place unless the account has enabled fractional share permissions then a fractional share will be purchased. If the purchase of securities would put the account into a margin deficiency, no reinvestment will take place. In addition, if the account's margin cushion is currently below 5% then a dividend reinvestment will not occur until the margin cushion exceeds 5%. Please note that dividend reinvestment orders are credit-checked at the time of entry—should an account go into margin deficiency at any time after that, including as a result of the end-of-day SMA check and the end of Soft Edge Margin, the account will become subject to automated liquidation.
If a dividend is paid in a currency not matching the traded currency of the product, the dividend will not be eligible for the DRIP program.
Please Note
- For accounts with AutoFX enabled, when the DRIP system runs that what-if credit check, the Credit Manager will now consider the cash balances across all the currencies the account has, allowing for FX to be booked to fund the DRIP trade if needed.
Additional Information