In most cases, IBKR will purchase new shares for the account the morning after the cash dividend has been paid to the account.
Please Note
- If the account does not hold sufficient funds to purchase shares or if purchasing the shares would result in the account not meeting margin compliance, the reinvestment will not occur.
- When the account has enabled fractional share permissions, a fractional share could be purchased through the DRIP program.
- 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.
- 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.
- Shares are not purchased via an issuer-sponsored reinvestment plan but rather in the open market.