No. of Recommendations: 0
Will any quarterly dividends be automatically deposited into the account? And if so should they be immediatly be combined with the odd few dollars left over from the orrigional stock purchase, and used to buy another share of one of the eight? Or will that be a wasted $7.00? Does the cash in this kind of account earn any interest?

Any left over money or dividend income that is in your account will sweep automatically into a money market fund where you will get higher interest.

It is usually not a good idea to reinvest dividend income because of the commissions. As a rule don't let your commissions be higher than one or two percent. Wait until the next time you are buying a larger block of stock and use that extra money then.

arkayem
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
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 Glassdoor #1 Company to Work For 2015! 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