Binck launches dividend reinvestment service for Dutch stocks
Investors can automatically reinvest future cash dividends in new shares
AMSTERDAM, APRIL 20, 2018 - BinckBank's retail investors in the Netherlands can now reinvest their cash dividends automatically, in new shares of the companies they hold in their portfolio's.
Binck has launched the new dividend reinvestment service, for more than thirty large Dutch stocks, including Shell, ING and KPN.
Disappearing stock dividends
The new service has been introduced at a time when many large Dutch companies have taken the decision to scrap the possibility of an optional dividend - (cash or stock) - and only pay out cash dividends to their shareholders. Recently Shell, the biggest dividend payer on the Euronext, Amsterdam, ceased paying out dividends in stock.
Traditionally April and May are the months when Dutch companies pay out the largest share of their annual 30 billion euro of dividends. Retail investors of Alex and Binck, can from today choose to receive their cash dividends in their Binck payments account or to automatically reinvest the cash dividend in to the equivalent value in shares.
Buy-and-hold-investors
"Many retail investors appreciate a dividend in shares and we receive regular calls regarding this subject. The new reinvestment service gives clients the possibility of an optional dividend in shares or in cash", says Jeroen Sonsma, director Binck Netherlands. "That's useful for larger retail investors who receive dividends on a regular basis, but also for reinvesting an incidental dividend in one or two new shares".
The new reinvestment service - based on the so-called DRIP (Dividend Reinvestment Plan) - is advantageous especially for buy-and-hold-investors, who can automatically, and at low cost, reinvest their cash dividend payments in their portfolio. For example, a cash dividend of 100 euro can be reinvested automatically into shares with a transaction fee of only 1 euro.
Look at the appendix for complete list of shares.
