Can anyone recommend a disconunt broker that offers dividend reinvestment? I currently use Scottrade and like their service except for the fact that they do not provide a dividend reinvestment.

Check out Firstrade. They provide dividend reinvestment and they are at 6.95/trade.



Sync

buymorestocks wrote:

Can anyone recommend a disconunt broker that offers dividend reinvestment? I currently use Scottrade and like their service except for the fact that they do not provide a dividend reinvestment.


My Reply:

The only broker I know of which does this is Folio(fn). I don't know if you'd call them a "discount" broker--probably not. They charge an annual fee for a certain number of trades.

In my opinion this works best in an IRA, because a lot of small transactions are generated.

Anyway, give them a look.

If this is a taxable account, make sure to keep very good records, and be prepared for the tax effort when you sell.

Can anyone recommend a disconunt broker that offers dividend reinvestment?

I don't use it myself, but Etrade has dividend reinvestment. I've been very happy with Etrade, where I've been since they completed their acquisition of BrownCo last May.

Lorenzo

I use Firstrade and Fidelity, both of which offer free dividend reinvestment. My Firstrade account came from one I migrated over from Scottrade and one of the reasons was for the dividend reinvestment feature.

I've been happy at both places. They're obviously very different brokerages, so choose the one that works best for your own personal situation and needs.

Mark

You've been given several brokers that offer dividend reinvestment, but let me ask why? In an IRA fine, if you like, but in a taxable account it will give you multiple dates of purchase and many cost basis figures. A real mess when you sell and have taxes to do. In this era of commissions under $10, I'd much rather have the option of reinvesting ALL the dividends in the account in one stock, or using accumulated dividends to start a new position. Just MHO.
Best wishes, Chris

You've been given several brokers that offer dividend reinvestment, but let me ask why? In an IRA fine, if you like, but in a taxable account it will give you multiple dates of purchase and many cost basis figures. A real mess when you sell and have taxes to do. In this era of commissions under $10, I'd much rather have the option of reinvesting ALL the dividends in the account in one stock, or using accumulated dividends to start a new position. Just MHO.
Best wishes, Chris - Crosenfield | Date: 12/18/06 7:22 AM | Number: 47442

That is exactly what I do too. I always have a list of companies that I am willing to buy at "the right price". When I receive cash from a dividend paying company and one of my "buy list" candidates is at the "right price" I buy more shares of it.

For the most part, I only buy stocks in my IRA. My other, smaller account is at Scott Trade. It holds some sares of Berkshire (BRK-B) stock and other non-dividend paying stock.

Kahuna,CFA

I am using Sogoinvest. It does not say it provides for dividend reinvestment. However, it does allow buying fractional shares and setting up automated investment plans at reduced commission (as low as $1/trade).

Please look at my post #45076 on this board.

We use Muriel Siebert (siebertnet.com) for holding dividend paying stock, and we've been very happy with them. They have real, live humans you can call when you need a form or have a question.

Siebert reinvests dividends for free. They do not impose "nuissance fees" on regular (non-IRA) accounts (e.g., quarterly fees for not having a large enough account balance, or for "inactivity" [i.e., not trading frequently]). The nuissance fees were the reason we abandoned E*trade, which also offered dividend reinvesting. When we left E*trade, Siebert reimbursed us for the "account closure" fee that E*trade charged.

You can transfer your shares held in Scottrade to Siebert for free, too (neither Siebert nor Scottrade charges for this service presently). Like you, we're pleased with Scottrade for holding non-dividend-paying shares.

Our only complaint about Siebert is that they have a goofy website interface.

See http://boards.fool.com/Message.asp?mid=24963636