Dividend Reinvestment Plan (DRIP)

The DRIP gives you the opportunity to buy Royal Mail shares using the dividend payment made on the shares you have already purchased.   

Due to the Share Incentive Plan (SIP) scheme rules, employees cannot use dividends received on their Free Shares to take part in the DRIP. Instead all dividends will be paid as cash. For more information, see the dividends section.   

To join
Applications to join the DRIP must reach the scheme administrator, Equiniti, at least fifteen working days before the date of the next dividend payment. Full details of the DRIP, including the terms and conditions and application form, can be found at www.shareview.com/drip  

Remember: companies do not have to pay dividends. Our Board will decide when and how often we will pay dividends to shareholders, and how much these dividends will be. This will depend on many things, including our company’s performance and future investment plans. 

If you choose to use any dividends received on the shares you have paid for to take part in the DRIP, our scheme administrator, Equiniti, will buy Royal Mail shares at the market value as soon as is practicable after dividends are paid.   

Employees will receive the maximum whole number of shares which can be bought on their behalf. Any cash dividend left over will be rolled over to the next dividend for the process to start again.
Any shares bought under the DRIP will be ‘ordinary’ shares. As with the shares you have already bought, you will be able to sell these shares at any time*, and you will not lose them if you leave Royal Mail employment.   

  • If you have a share certificate, Equiniti will send you a tax voucher with a contract note confirming the purchase price and number of new shares you have purchased with your new additional share certificate.
  • If you hold your shares in the Royal Mail Nominee Share Service, Equiniti will send you a tax voucher and a contract note confirming the purchase and number of new shares you have purchased. 

You will also be able to see any additional shares you have bought under the DRIP in your Employee Shares Account at www.royalmailemployeeshares.co.uk  

Remember, joining the DRIP is voluntary.  

To cancel 

If you have already joined the DRIP, you can come out of the plan whenever you like. To cancel your participation in the DRIP, you can complete and return a Dividend Reinvestment Plan Revoke form available here. A written request sent to Equiniti, Aspect House, Spencer Road, LANCING, BN99 6DA will also be accepted. 

Please include your Shareholder Reference (if you have one). This is the eleven digit number found on your share certificate, share statement, recent dividend information or correspondence. 

Dividends reinvested under the DRIP are taxed in the same way as dividends that are paid as cash. To find out more about tax on dividends, click here.


*You will have been told if any relevant dealing restrictions apply to you