Albert Einstein called compounding the seventh wonder of the world, and there is no place where it works its wonder better than the stock market.
Dividend reinvesting is one way to enjoy more of the benefits of compounding. By reinvesting their dividends, investors can accelerate their portfolio growth.
But doing it manually can be so stressful that one wonders whether the benefit is worth the cost. Thankfully, many investment apps automate the dividend reinvestment process.
If your approach is to invest in the best dividend stocks in the UAE, then you need such an app for a more convenient investment experience.
In what follows, we consider five of the best investment apps in the UAE with automatic dividend reinvestment.
1.Sarwa: Best for managed and automated investing
Overview
Sarwa is a UAE-based investment platform that is licensed in the Abu Dhabi Global Markets (ADGM) by the Financial Services Regulatory Authority (FSRA).
It offers automated dividend reinvestment through its Sarwa Invest product. This is a managed investment platform where users can passively invest in diversified and personalized portfolios of ETFs.
Other key advantages
- Halal investing: Halal investors can opt for Halal portfolios instead of conventional portfolios.
- Socially responsible investing (SRI): Impact and socially responsible investors can also invest in SRI portfolios that match their investment goals.
- Free local bank transfers: Transfers between local UAE banks and Sarwa brokerage accounts are free.
- Automated investment: Investors can automate transfers from their savings or checking accounts to their Sarwa Invest portfolios. This makes it easy to save before spending.
- Automatic rebalancing: Sarwa’s wealth advisors will rebalance users’ portfolios to maintain their efficiency.
- Educational resources: Sarwa’s blog contains diverse resources on how to become a better investor. These range from articles on how to invest in the S&P 500 to how to conduct stock market fundamental and technical analysis.
Ideal user
Sarwa is ideal for investors who want a fully automated approach to investing.
2.Interactive Brokers: Best for advanced investors
Overview
Interactive Brokers (IBKR) is a global investing and trading platform that provides access to stocks, bonds, mutual funds, currencies, and cryptocurrencies, among others.
Users of Interactive Brokers can opt for automated dividend reinvestment for shares and ETFs. Once they have set this up during onboarding, subsequent dividends are reinvested into the market.
They can also opt out of it anytime.
Other key advantages
- Multi-asset access: IBKR offers access to multiple asset classes across 90 market centers.
- Advanced tools: Through its Trader Workstation platform, IBKR offers access to various investment research tools.
- AED funding: UAE investors can fund their accounts in AED.
- Low minimum balance requirement: There is no minimum amount required to get started.
Ideal user
IBKR is ideal for advanced investors who need access to premium tools.
3.Trading 212: Best for beginner investors
Overview
Trading 212 is a UK-based investment platform.
While it is not separately regulated in the UAE, UAE investors can open accounts on the platform.
Trading 212 offers automated dividend reinvestment as part of its Pies and Autoinvest product.
Investors can create custom portfolios (pie) of multiple asset classes (slices), select one of the model pies created by Trading 212, or replicate one created by another user. Dividends from any of the slices are reinvested automatically.
Other key advantages
- Commission-free investing: Stock and ETF investing are commission-free.
- Low minimum deposit: Investors can get started with as little as $1.
- Beginner-friendly platform: Beginners can quickly master the Trading 212 platform.
- Fractional investing: Users can invest as little as $1
Ideal user
Trading 212 is ideal for beginner investors.
4.Wahed Invest: Best for Sharia-compliant investing
Overview
Wahed Invest is a Sharia-compliant roboadvisor that is regulated in the UAE by the FSRA.
It provides automated dividend reinvestment as a part of its robo-advisory product.
Other key advantages
- Sharia-compliant portfolios: Wahed Invest only invests in assets that comply with Sharia investing standards.
- Multi-asset access: They invest users’ money in stocks, real estate, gold, and bonds across global markets.
- Automated rebalancing: Wahed Invest rebalances portfolios automatically whenever needed.
Ideal user
Wahed Invest is ideal for passive investors who want to invest solely in Sharia-compliant assets.