Need to Disable DRIP
Summary of User’s Issue and Solutions Discussed:
- The main problem reported by the user is difficulty in turning off the Dividend Reinvestment Plan (DRIP) for future equity purchases, despite following the steps to manage dividends.
- Fidelity suggested that the issue may occur if the election to have dividends sent to the core was completed after the record date and recommended contacting them via direct message on X or Modmail on Reddit for further assistance.
- They provided a link for changing dividend elections and emphasized the importance of checking the option for “Future equity purchases, transfers, and deposits to this account.”
- The user successfully resolved the issue by calling the Active Trader Service line and noted a possible backend software issue with the website process.
- Fidelity acknowledged the user’s resolution and mentioned they would inform their developers about the potential issue.
Here’s the full thread
I have been trying to turn off DRIP for all future equity purchases but it is not working.
I went through the “Manage Dividends” and selected “Deposit to Core Account” and checked Apply to “Future equity purchases …”. I had done this everytime I had purchase a new stock because they always default to reinvest in security.
I would like to disable DRIP for all my accounts. How do I do that?
Hi @Git_R_Done_77, thanks for stopping by our Discord server.
One of the most common causes for the Dividend Reinvestment Plan (DRIP) reinvesting instead of paying to cash is that the election to have dividends sent to the core was completed after the record date. However, it sounds like you’ve taken the steps to ensure your dividends are sent to the core position. I’d recommend sending us a DM on X or a Modmail on Reddit. We can take a closer look at your account in a secure environment.
Generally, you can change your dividend elections using this link: https://www.fidelity.com/customer-service/how-to-dividend-and-cap-gains-distributions
If you want your dividend election to apply to future purchases of stock, make sure to check the “Future equity purchases, transfers, and deposits to this account” box under “Apply To” when updating your elections.
From your post, it appears you’ve already taken that step. Follow up with us on those platforms I mentioned and we will provide further support. 🟢
I called Active Trader Service line and got it changed. I don’t know why it doesn’t work doing it on the website, maybe there is a backend software issue?
That’s good news to hear. I’ll pass this on to our developers so they are aware. 🟢