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Started By
Message
Has the FlexibleRIP made the DRIP obsolete?
Posted on 7/13/13 at 6:10 pm
Posted on 7/13/13 at 6:10 pm
I just signed up for this program with Scottrade. Looks like it takes away the paying of commissions when reinvesting which was the beauty of the DRIP.
quote:. The chart below provides a quick review of the differences between FRIP™ and DRIP.
A typical brokerage DRIP requires you to reinvest dividends from a dividend-paying security back into that same security. However the Flexible Reinvestment Program™ lets you invest dividends into up to five different eligible securities
quote:
Feature
FRIP™
Typical Brokerage DRIP
Commission-free reinvesting
Yes
Yes
Automatic Reinvesting
Yes
Yes
Pool of Accumulated Dividends
Yes. All designated dividend-paying securities feed into the pool
No. Dividends paid by a security can be invested only in that same security
Reinvest in Most Stocks or ETFs, Including Non-Dividend Securities
Yes
No
Flexible Allocation Percentage
Yes
No
Flexible Reinvestment Date
Yes. Date to invest funds can be altered at any time
No. Reinvest occurs only after a security pays a dividend
Fractional Shares
No. Only whole shares purchased
Yes
Posted on 7/13/13 at 6:30 pm to StrangeBrew
Not obsolete because of
But it definitely gives the DRIP some serious competition.
quote:
Fractional Shares No. Only whole shares purchased Yes
But it definitely gives the DRIP some serious competition.
Posted on 7/13/13 at 6:32 pm to StrangeBrew
quote:
No. Only whole shares purchased
Deal breaker.
Especially as pretty much all of my trades are commission free anyway, I might as well just dump the dividends into a sweep fund and allocate myself.
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