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Does Superhero Offer Dividend Reinvestment?

Many shares and ETFs will offer dividends. These payments are basically the company distributing its profits to shareholders. Superhero is a popular Australian investing app. They run using a custodial model. So how do dividends work on Superhero and do they offer dividend reinvestment? Find out more here.

Can you Get Dividends on Superhero

Dividends are paid into your Superhero wallet. Even though Superhero acts as the custodian, you will still receive all dividends on shares and ETFs that you own. The money in your Superhero wallet can be withdrawn to your bank account or you can use it to invest in more shares and ETFs.

Does Superhero Offer Dividend Reinvestment?

No. Some companies have DRiP (Dividend Reinvestment Plans) plans. Instead of paying dividends, these companies will automatically reinvest you dividends into more shares. You can’t do this with Superhero.

Other apps like Raiz, will also automatically invest dividends back into your account. You can’t do this on Superhero.

But you can easily invest in more shares manually. And because many ETFs are fee free, and the minimum investment amount is $100, you can easily invest smaller dividend amounts. For many investors, the amount of dividends they receive wouldn’t buy them 1 whole share anyway.

Is Automatically Reinvesting Dividends a Good Idea

To find out the best way to reinvest dividends you should speak with a financial planner. They will be able to give the pros and cons for your individual case. One thing to remember though is dividends count as income. So you will need to report and pay tax on dividends you receive.

Disclaimer – This post shouldn’t be considered investment advice. We don’t earn any commissions from writing about this product.

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