My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 2020 with at least $3 million.


By Topics

Overall:
0. About (10)
1. My Progress (139)
2. Car & Home (107)
3. Credit (138)
4. Banking (33)
5. Saving (49)
6. Investing (308)
7. Taxes (89)
8. Spending (74)
9. Misc (97)
A. Archive (49)



MONTHLY ARCHIVE

Feb 2014 (3)
Jan 2014 (6)
Jan 2012 (1)
Apr 2011 (1)
Mar 2011 (1)
Feb 2011 (1)
Jan 2011 (1)
Dec 2010 (1)
Oct 2010 (1)
Sep 2010 (1)
Aug 2010 (1)
Jul 2010 (1)
Jun 2010 (1)
May 2010 (1)
Apr 2010 (1)
Mar 2010 (6)
Feb 2010 (2)
Jan 2010 (7)
Dec 2009 (3)
Feb 2009 (4)
Jan 2009 (8)
Dec 2008 (1)
Jun 2008 (2)
May 2008 (2)
Apr 2008 (5)
Feb 2008 (3)
Jan 2008 (15)
Dec 2007 (32)
Nov 2007 (6)
Oct 2007 (8)
Sep 2007 (9)
Aug 2007 (24)
Jul 2007 (2)
Jun 2007 (1)
May 2007 (3)
Apr 2007 (4)
Mar 2007 (4)
Feb 2007 (13)
Jan 2007 (6)
Dec 2006 (3)
Nov 2006 (7)
Oct 2006 (7)
Sep 2006 (6)
Aug 2006 (4)
Jul 2006 (10)
Jun 2006 (1)
May 2006 (3)
Apr 2006 (2)
Mar 2006 (6)
Feb 2006 (6)
Jan 2006 (3)
Dec 2005 (1)
Nov 2005 (9)
Oct 2005 (8)
Sep 2005 (13)
Aug 2005 (25)
Jul 2005 (16)
Jun 2005 (17)
May 2005 (19)
Apr 2005 (20)
Mar 2005 (24)
Feb 2005 (23)
Jan 2005 (36)
Dec 2004 (40)
Nov 2004 (34)
Oct 2004 (17)
Sep 2004 (21)
Aug 2004 (59)
Jul 2004 (37)
Jun 2004 (31)
May 2004 (29)
Apr 2004 (52)
Mar 2004 (49)
Feb 2004 (49)
Jan 2004 (31)
Dec 2003 (48)
Nov 2003 (52)
Oct 2003 (29)
Sep 2003 (8)
Aug 2003 (5)
Jul 2003 (2)
Jun 2003 (2)
May 2003 (5)
Apr 2003 (2)
Mar 2003 (2)
Feb 2003 (3)
Jan 2003 (29)



 

Enrolling in Automatic Dividend Investment for Stock Holdings

Contributed by mm | July 25, 2006 3:35 PM PST

Tim Beyers at Fool.com reminds us that automatic dividend investment is applicable to stock positions too:

Brokers are generally very helpful when it comes to reinvesting dividends. Most often, you'll simply choose an option online to have the dividends from the stocks you own reinvested. Better still, the service is often free. Here's a short rundown of what I learned in a recent survey of popular brokerages.

Originally I held the belief that I can only reinvest dividends from my mutual fund holdings, but Tim reported that Charles Schwab, E*Trade, Fidelity and TD Ameritrade all offer such services. An email exchange to Fidelity rep confirmed that Fidelity is offering this for free:

At Fidelity, we do not charge a commission to reinvest your dividends. If you elect for dividend reinvestments, your dividends will only reinvest if the company allows for reinvestments. Some companies may choose for their dividends to pay to cash only and that will override your choice for reinvesting.

I'm holding on a number of high yielding stocks Bank of America (BAC), Citigroup (C), Altria (MO) and Pfizer (PFE), so without any hesitation, I enabled automatic dividend investment for all these positions. As Tim correctly observed, "when it comes to stocks and investing, found money in the form of dividends is about as good as it gets. And since the service is free at most brokerages, it's never been cheaper to cash in."

More PFBlog Articles You Might Find Interesting ...


This Post Has Received 5 Comments. Share Your Opinions Too.


Tery Commented on July 26, 2006

Be sure to track each re-investment. It's a seperate tax lot each time you recieve a dividend.


2million Commented on July 26, 2006

I agree the downside is the tax implications from selling. I am not sure if Fidelity will track all that for you. Its not too bad if you dont' mind plugging the numbers into a spreadsheet for awhile when you sell something.



Anand Commented on July 28, 2006

The tax implications usually aren't too hard to deal with - your broker should keep track of all that for you. Schwab sends me a quarterly report showing all the different re-invested dividends which makes tax time much easier.

Also, not every broker will offer automatic reinvestment on stocks- my father-in-law found out Scottrade does not offer it after he joined them. Puts a damper on their image of being a good "discount" broker.


Moshe Cabral Commented on December 31, 2006

PS3's Portrait Slideshow Face Detection..


Ryder Lowry Commented on December 31, 2006

Please Please Please let me in- Tomi Rae Brown..



Read More ... 308 Posts In The Same Category










This page was last rebuilt at January 27, 2014 07:37 AM PST.
 

RSS FEED





PERSONAL FINANCE BLOGS I READ

Consumerism Commentary
Get Rich Slowly
My Money Blog
All Financial Matters
The Simple Dollar






.

Error 500 - Internal server error

Error 500 - Internal server error

An internal server error has occured!
Please try again later.



Copyright 2003-2014, PFBlog.com. All Rights Reserved. (Privacy Policy)