Does Fidelity DRIP in Fidfolio reinvest into the core stock?
Here’s a summary of the main problem reported and solutions discussed:
- Main Problem: The user is concerned that dividends reinvested from held stocks in Fidfolio create new positions outside the main basket, which is not ideal for compounding.
- Current Solution: As of now, reinvested dividends do create new positions and tax lots separate from the basket, meaning they do not affect basket weights.
- Future Solution: Fidelity acknowledges the feedback and indicated that reinvesting dividends directly into the basket is on their roadmap for future updates.
Here’s the full thread
Last I heard in Q3 2023 this was planned. Does DRIP from held stocks in this Fidfolio reinvest into the core stock? I heard before it just created a new position separate from the basket which is not ideal for compounding.
Hey there! I’m happy to clarify on this.
Currently, reinvested dividends create new positions and tax lots placed outside the basket. This can lead to seeing positions both inside and outside your basket. Additionally, since the reinvested shares are not held in the basket, they do not factor into the basket weights.
That said, we take feedback seriously, and this is on our roadmap for the future, as you know. I’ll go ahead and pass your feedback about reinvesting dividends inside your baskets along to the appropriate team.
In the meantime, please let us know if you have any additional questions, as we’re always happy to help. 🟢