The fact that Scottrade didn't allow commission free dividend reinvestment was the main reason that I decided to not use them as my brokerage. If their policy does in fact change this could be very useful for dividend growth investors. I might open a new brokerage account sometime next year with Scottrade since I can get almost a 12% reduction in commissions. It's only $0.95 per trade but that will add up when you're talking about 2-3 buys a month. I'll definitely be on the lookout come February 2013 to see if this has changed because I'm still on on the fence with whether I should reinvest automatically or selectively reinvest but pay commissions. This would give the DG investor the opportunity to selectively reinvest without having to pay extra commission.
Sunday, December 2, 2012
Scottrade to offer a fee free semi-DRIP plan?
Read this with a grain of salt because I haven't researched it but on the comment thread from an article on Seeking Alpha, one user commented that Scottrade was making a change to a their dividend reinvestment policy in 2013. Starting in February they will begin allowing all dividends to accumulate and you can then reinvest in one stock for no commission. It will still be full shares only but a change like this could be useful.