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Does InvestSMART automatically reinvest dividends and interest?
Does InvestSMART automatically reinvest dividends and interest?

Are my dividends, distributions, interest, returns, reinvested?

Tom Wilson avatar
Written by Tom Wilson
Updated over a week ago

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Yes, InvestSMART does provide automatic reinvestment for distributions, dividends, and interest.

By default, when your holdings pay dividends, the funds will be added to the cash component of your account. If the cash balance becomes unbalanced, the default is to invest it into your other holdings.

So you don't have to reinvest your dividends and interest manually. InvestSMART takes care of it for you, helping you grow your investment portfolio over time. The reinvested funds are invested across your entire investment account, ensuring a balanced allocation and supporting portfolio growth.

Where do the dividends go?

InvestSMART does not participate in dividend reinvestment plans. This means that the dividends from the holdings won't automatically be re-invested in the same holding they originated from.

When the dividends from your holdings are paid, they will go into the cash component of your account. When the cash component is out of balance, the default setting is for the cash to be invested across the other holdings.

Clients can elect to have the dividends paid out instead in a monthly income sweep. At the end of each month, all dividends and interest received by your account will be tallied and paid out to the bank account you nominated in your application form.

You can view dividends via the Dividends & Interest and Deposits & Withdrawals tabs:

When will the dividends be used to purchase more shares?

When the dividends from your holdings are paid, they will go into the cash component of your account. When the cash component is out of balance, the default setting is for the cash to be invested across the other holdings. Accounts are rebalanced periodically.

Can I have the dividends paid out? How do I change my income settings?

Yes, you can elect to have the dividends paid out instead in a monthly income sweep. At the end of each month, all dividends and interest received by your account will be tallied and paid out to the bank account you nominated in your application form.

You can turn on the Income Sweep setting in My Account > Investment Preferences, or here:

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