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Author: FedtheFoot Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8893  
Subject: TD Ameritrade Dividend Reinvestment policy Date: 5/31/2006 3:05 AM
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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.

For now my old accounts remain the same with the old rules. I am worried that when TD Ameritrade finishes their integration this dividend reinvestment plan will be lost to me. I do not hold enough of any position to buy a whole share of any stock.

Does anybody have any idea if TD Ameritrade is going to get rid of the old rules that govern the old TD Waterhouse accounts? If so what is the best brokerage for dividend reinvestment?

Thank you in advance if you have any information

Ryan
FedtheFoot
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Author: rnam Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2407 of 8893
Subject: Re: TD Ameritrade Dividend Reinvestment policy Date: 5/31/2006 9:10 AM
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When the deal was announced, my local branch manager contacted me to ask if I had any questions or concerns about the merger.

I said the two most important things to me, in order, were:

1. Free dividend reinvestment, including fractional shares.
2. Physical branches and access to company representatives.

I told him they were they were the primary features which distinguished Waterhouse from its discount broker competitors and led me to select them for all my families' accounts. I also told him that I would seriously look at competitors if they got rid of either.

He assured me both services were being retained for "legacy' (meaning Waterhouse) accounts.

I wasn't aware that new accounts or old Ameritrade accounts do not have DRIP with fractional shares. There is always a risk that there will be some rationalization of services in future, especially, if they are losing money.

I would suggest, that you call or meet the local branch manager and express your concerns. If this is not convenient, write a letter to the CEO.

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Author: 5MinMajor Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2408 of 8893
Subject: Re: TD Ameritrade Dividend Reinvestment policy Date: 5/31/2006 9:31 AM
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We know. We've been told 100 times already.



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Author: GinnyW Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2409 of 8893
Subject: Re: TD Ameritrade Dividend Reinvestment policy Date: 5/31/2006 4:33 PM
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Does anybody have any idea if TD Ameritrade is going to get rid of the old rules that govern the old TD Waterhouse accounts? If so what is the best brokerage for dividend reinvestment?
I don't know what TD Ameritrade is going to do but I do know that Fidelity will reinvest partial shares as I have been doing that for a long time with them.
Hope this helps
Ginny



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Author: horacekgl Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2414 of 8893
Subject: Re: TD Ameritrade Dividend Reinvestment policy Date: 5/31/2006 9:24 PM
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Sure. Charles Schwab. Why not go with the original discount broker and still the best? I don't know exactly where the price breaks, but I pay around $10 per trade. For the protection provided by a heavy-weight like Schwab, I'll take it over going for $7 elsewhere.

glh

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Author: horacekgl Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2415 of 8893
Subject: Re: TD Ameritrade Dividend Reinvestment policy Date: 5/31/2006 9:27 PM
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We know. We've been told 100 times already.

But he forgot to say that this company is under SEC investigation for 'options' issues. Their shares will probably be going on sale soon, so we all can share the wealth.

glh

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Author: bNcS One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2416 of 8893
Subject: Re: TD Ameritrade Dividend Reinvestment policy Date: 5/31/2006 11:47 PM
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Does anyone have the URL for where TD Ameritrade discusses their dividend reinvestment policy? I have searched all over the web site, but information isn't very easy to find. The TD Waterhouse web site was much more informative. If I log into my account, I get TD Waterhouse's old FAQs, which some of them haven't been updated yet. Commissions are still listed at 17.95 in some places, so I don't know if the information is accurate.

I too like the factional shares of the dividend reinvestment, and would consider switching if I lost it. I was hoping to open another account there for my daughter and possiblity a margin account, but if I can't get that feature for my new accounts, I might consider moving all my assets to Schwab or someone else.

Thanks in advance,
Brooks



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Author: FedtheFoot Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2417 of 8893
Subject: Re: TD Ameritrade Dividend Reinvestment policy Date: 6/1/2006 11:31 AM
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Does anyone have the URL for where TD Ameritrade discusses their dividend reinvestment policy?

I could not get the info from the legacy Waterhouse account but this is the new TD Ameritrade's response:

TD AMERITRADE offers dividend reinvestment on certain securities. The list is growing every day, so we will need to know which stocks you are interested in to determine if they are eligible. Please call a Client Services representative at 800-669-3900 to see if your security is eligible for dividend reinvestment.
Please be aware that if a security is eligible, you will need to be holding enough shares in your account so the dividend paid will generate one whole share. There is no charge for this service.
Please call a Client Services representative at 800-669-3900 for further information.


---------------

We know. We've been told 100 times already.

Wow! That's a lot. I apologize for having to be the 101st.

Thank you guys for all of the information, especially rnam's post about the branch manager. The fact they are going to keep a DRIP for "legacy" accounts is a big relief because if they do get rid of it I would have to consider moving my account to Charles Schwab.

Ryan
FedtheFoot

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Author: Hohum77 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2418 of 8893
Subject: Re: TD Ameritrade Dividend Reinvestment policy Date: 6/1/2006 9:16 PM
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<< We know. We've been told 100 times already.


Wow! That's a lot. I apologize for having to be the 101st. >>

Ryan,
I don't think that was in reference to your inquiry, I think it was in reference to the next poster regarding not reinvesting dividends back in the same company. I think I have seen the statment on not reinvesting dividends from the same poster a couple of times prior to this thread.


FWIW, I think a DRIP is a good way to invest, especially for an IRA. My IRA is/was with Ameritrade, so I am on the side of the equation you don't like i.e. DRIP is only in whole shares. It's actually more negative than that- they don't even DRIP all dividend paying stocks, only specific ones (A CSR said, "Call back and check from time-to-time to see if we have added any new ones")


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