UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: kahunacfa Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8740  
Subject: Re: TD Ameritrade Dividend Reinvestment policy Date: 5/31/2006 9:05 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Help, I'm worried about my dividend reinvestment

I have been a long time TD Waterhouse customer with a regular individual account and Roth there. I had just found out about their dividend reinvestment policy when they announced that they were merging with Ameritrade. The old TD Waterhouse allowed you to reinvest dividends no matter how small the amount and would buy fractional shares. I love this service and would very much like to use it for the rest of my investing life.

The problem is that to reinvest dividend in the new TD Ameritrade accounts you have to have enough dividends to purchase a whole share of whatever company issues the dividend. I learned this when I recently rolled over my 401k plan to a traditional IRA that was setup under the new rules.
- FedtheFoot | Date: 5/31/06 3:05 AM | Number: 2405

I do not ever re-invest the dividends that I receive in stocks held in my IRA account in the same company that paid the dividend. I let the cash dividends accumulate and buy the best stock that I already hold, or invest the cash in my best new stock idea. Using this proceedure, my IRA has generated a 24.2% compound annual rate of returm from when I started it, with a $2,000 tax-deductable, contribution in 1980 through year-end 2005. Some of the new stocks that I have been buying recently, one for less than cash per share, do not pay a dividend.

Kahuna,CFA
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

Motley Fool Income Investor
Are you a dividend-savvy investor? Check out our Income Investor newsletter.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement