I'm Going To Miss The FRIP
4 stars based on
I currently use Scottrade as my brokerage firm so I took a look at this program and I think it is a great tool for those parties interested in automatically reinvesting dividends, but would also enjoy flexibility as to what securities the dividends get reinvested back into. As I noted in an article a while back where I talked about why I do not DRIPor automatically reinvest my dividends back into the equities that paid them out, I pointed out that reinvesting dividends in such a rigid and unthoughtful manner did not make sense to me.
And, of course, value does matter. The only downside might be that you can only purchase whole shares. No fractional shares can be purchased with this program. The flexibility of the plan is really the highlight. The reason being that almost all of my worldly wealth is tied up with one firm. Not exactly a great scenario to think about. However, if I had investments set up with another brokerage firm I would still have some income coming in while the SIPC cleans things up.
Not exactly something I even want to imagine. Diversifying between brokerages hedges my bets and reduces my exposure to that kind of risk. So, lately I have been thinking about diversifying my wealth between more than one brokerage firm. There are a bevy of high quality brokerages available to us individual small-time retail investors these days, which is really a blessing all in itself.
And, as always, I walk the walk rather than just talk the talk. What do you think? Do how to change dividend reinvestment scottrade options like the new FRIP program? Do you believe in how to change dividend reinvestment scottrade options more than one brokerage firm? Why or why not?
What discount brokerage firms should I be considering? I like the FRIP in theory but think it falls short. This program really only fits people with large portfolios as it takes the small guys much longer to get a decent pool of dividends collected. It looks nice and I could see it being usefull in big portfolios where it is harder to monitor every stock seperately.
If I could get my dividends reinvested without commissions that would be worth celebrating…usually I pool up my dividends and use those funds in combination with additional contributions to make my purchases, maybe a few times a month.
Not paying a seven dollar purchase is an awesome benefit. I thoroughly believe it is the small fees that eat into future gains. That is the main reason I abhor the idea of mutual fund investing. I have a pension program at work and my Scottrade accounts keep a smile on my how to change dividend reinvestment scottrade options.
As an aside Im late to the realization that I could have invested and saved more to retire young. Keep up the good work. TD Ameritrade is a very good option. Been using them for many years. Scottrade allows you to constantly change your securities and the allocation percentages so you really are not limited besides the 2pm transaction time the next day.
I think the FRIP really is a great tool with plenty of positives. Although Scottrade mentions you can only have 5 securities registered at a time, you can change these at any time. I have already made a few transactions with the FRIP as I have seen ownership in some of my securities drop in the past 2 weeks.
I would be interested to see if there is some type of method that determines when around the 2pm mark they purchase them, because my 2 securities each time I used this function were purchased on a dip, while by 2pm they seemed to have recovered in price a bit. Maybe I just got lucky, has anyone else noticed this? I use tradeking and they offer a DRIP program that reinvest dividends as partial shares for free.
The also only charge 4. I find Etrade tools are even more useful than those at TD, especially the Income Estimator tool which shows what dividends have been announced and expected over next 3,6,12 months.
This is a very interesting topic as it is near and dear everyone in the community. Wells Fargo has been great for me because I get free trades per how to change dividend reinvestment scottrade options. I like Scottrade and have used them for many years. This makes a lot of sense to me. When the reinvestment time arrives, I will double-check my stock selection and might make a change.
I can see how the lack of ability to purchase fractional shares can be a drawback for some. But SkyInvestor did point out that you can allocate as much as necessary to one security so that a purchase is triggered. I just now looked at Merrill Edge. I do the same thing as you. I pool my dividends with fresh cash from my day job and make purchases with the combined sources of capital.
The less fees the better. Hey, a positive vote for TD Ameritrade! Yeah, I think the flexibility how to change dividend reinvestment scottrade options this program is fantastic. You can select how to change dividend reinvestment scottrade options five, or one or three or whatever and you can also change them at will.
However, that additional coverage is very murky. I really like the idea of an Income Estimator tool like that. Existing accounts are grandfathered in. Also, it looks like that plan required a fairly how to change dividend reinvestment scottrade options cash balance with a WF checking account.
Not a fan at all, but this new FRIP could revolutionize reinvesting dividends. I imagine other companies will follow in suit. Glad to see you really like the new FRIP. I think it offers a lot of value and flexibility to Scottrade customers.
Glad to see you like TradeKing. That was mentioned earlier. Cheap transaction fees are nice! It was a great program and I feel lucky to have been grandfathered in.
I have spent some time looking at SIPC and various online brokerages. I came to the conclusion that Optionshouse is the best deal. I currently use fidelity and have zero complaints. I have thought about diversifying brokers and think Scottrade would the top candidate for the second account. Customer service is also important to me.
Glad to hear you like Fidelity. Customer service is also very important to me. As is physical locations. I like knowing that I can go to an office and actually talk to someone if need be. Let me know how to change dividend reinvestment scottrade options you find out if you decide to look into this.
Another vote for TD! They have won a number of awards over the last few years, usually placing them either 1 or 2 for discount brokerage firms. Best of luck with building your portfolio and increasing the dividends. The progress can happen quickly! I moved from Ameritrade quite a few years ago now.
The free trades made me even happier! Since they are free trades it just means that a few extra shares get purchased in between my larger monthly purchases. Seems like a good deal to me. I would also echo what a few have said about picking a larger brokerage that has been around a while.
E-Trade and Ameritrade are great companies. Just a personal feeling. You have to call the local branch and have them mail you a check. That could be a real problem when you start living off of your dividend income. When you choose your next broker, make sure you can have dividend income transferred directly to your bank account.
I always buy shares direct from the company and reinvest the dividends your way seems better but those frational shares add up what do you think of NJR and GAS stock you seem to be a good number guy im not every good at that all I know is my dividends checks keep getting bigger how to change dividend reinvestment scottrade options some time down the road I will walk down to my mail box and see a dividend check twice a week from some stock I how to change dividend reinvestment scottrade options five years ago.
Jason, diversifying against brokerage houses is an intelligent maneuver. What you would do is this: This is how someone like Warren Buffett is able to buy 1, shares of JP Morgan in his personal account without running around across dozens of brokerage houses. As always, great work. I use scottrade too, and was reading up about the FRIP program.
I am not completely clear about it though. Or setting the FRIP or changing the allocation only applies to future dividend income? Obviously in our case we use the 50, in how to change dividend reinvestment scottrade options to qualify for free trades.