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Dividend Reinvestment Plans (DRP)

A Dividend Reinvestment Plan (DRP, sometimes called DRIP) allows you to automatically reinvest your dividend payments as additional shares instead of receiving cash. Metrifly supports tracking DRP events so your share count and cost basis stay accurate.

What Is a DRP?​

When you participate in a DRP:

  • Instead of receiving cash, the dividend amount is used to buy additional shares
  • The new shares are typically purchased at the market price (sometimes at a small discount)
  • Your share count increases, but you do not receive a cash payment
  • For tax purposes, the dividend is still considered income even though it was reinvested

Example: You hold 200 shares of XYZ, which pays a $0.50 per share dividend. Instead of receiving $100 in cash, the DRP uses that $100 to buy approximately 2 additional shares at $50 each. You now hold 202 shares.

Configuring DRP for a Holding​

To tell Metrifly that a holding participates in a DRP:

  1. Open the holding detail page by clicking the holding name.
  2. Go to the Settings tab.
  3. Toggle the DRP switch to On.
  4. Click Save.

DRP setting on holding

When DRP is enabled for a holding, the confirm dividend dialog defaults to the DRP confirmation type instead of Paid.

Confirming a DRP Dividend​

When a pending dividend appears for a DRP-enrolled holding:

  1. Click Confirm on the pending dividend.
  2. The dialog defaults to DRP as the confirmation type (if DRP is enabled in the holding settings).
  3. Review the details:
    • Dividend amount -- The cash value of the dividend
    • Shares acquired -- Number of new shares purchased via DRP
    • Price per share -- The DRP purchase price
  4. Adjust any values if they differ from your broker's DRP statement.
  5. Click Confirm.

What happens:

  • The dividend income is recorded for tax purposes
  • Your holding's share count increases by the DRP shares
  • The cost basis increases by the dividend amount (the reinvested amount becomes additional cost basis)

DRP Impact on Tax​

Even though you did not receive cash, DRP dividends are still taxable income:

  • The dividend amount appears in your Income Report
  • Franking credits still apply (for Australian stocks)
  • The reinvested shares have a cost basis equal to the DRP purchase price -- this is important when you eventually sell those shares
  • The acquisition date for the DRP shares is the dividend payment date, which matters for CGT discount eligibility (12-month holding period)
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Treat DRP dividends the same as cash dividends for tax purposes. The only difference is that the money was reinvested instead of deposited into your bank account. Consult your accountant if you are unsure how DRP affects your tax situation.

Viewing DRP Events​

DRP-confirmed dividends are displayed with a DRP status badge (distinct from the Paid badge for cash dividends).

You can find them on:

  • The Dividends page -- Filter by DRP status
  • The holding Income tab -- Look for the DRP badge

Common Scenarios​

Switching DRP On or Off​

You can toggle the DRP setting at any time. It does not retroactively change past dividend confirmations. It only affects the default confirmation type for future dividends.

Partial DRP​

Some companies allow partial DRP (reinvest dividends from some shares, take cash on others). Metrifly does not support partial DRP per event. As a workaround:

  1. Confirm the DRP portion as DRP.
  2. Manually add a separate DIVIDEND transaction for the cash portion.

DRP with Different Purchase Price​

The DRP purchase price may differ from the market price on the ex-date (some companies offer a discount). When confirming, adjust the Price field to match your broker's DRP statement.

Troubleshooting​

ProblemSolution
DRP not defaulting in confirm dialogCheck that DRP is enabled in the holding's Settings tab.
Share count did not increase after DRP confirmationVerify the DRP event was confirmed (check status badge). Refresh the page.
DRP shares have wrong cost basisEdit the underlying transaction to correct the price. See Editing Transactions.