UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: RoyHinkley Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27822  
Subject: Re: Help Needed with DRIPs Date: 5/1/2014 11:09 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
To establish a DRIP you simply have to contact your broker or the stock issuer. I know that with TD Ameritrade you can have your account set so that all positions in dividend stocks are automatically enrolled in DRIPs. That is useful if you don't want to have to contact them every time you buy a dividend stock.

You might want to think about how much you are paying in fees by spreading a relatively small amount of money over so many stocks.

While people like to say that you can "set it and forget it", I don't find that to be true. My advice would be to send your $400 per month to your broker and have it held in a money market account (there is no fee for that) and use it to accumulate shares of your stocks when they dip. Lower your average cost per share when possible.

Keep in mind that except with a Roth IRA (which is not subject to taxes on gains) in the United States you will have to pay 15% tax on dividend income whether you sell the stock or not. It's a good practice to keep track of how many shares you purchased and at what prices as well as how many shares you received via DRIP and at what prices.

Some discount brokers charge more or less than others, but the level of service received is often commensurate with what you are paying for. I like TD Ameritrade because of their excellent Think Or Swim trading platform (desktop as well as phone app) and the availability of educational resources such as their daily "Swim Lessons" and their webcasts and live educational events that you can often take advantage of for free if you are an account holder. The customer service is also excellent IMO.

HTH
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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