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Dividend re-investment & Parking money
Old 09-28-2005, 04:14 PM   #1
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Dividend re-investment & Parking money

This is a two part question. First I have heard it mentioned, but I can't remember the name of the firm to contact for purchasing and re-investing dividends. (Not dealing with the stock company itself)
Say if you have 20 different stocks that you want to hold, and re-invest the dividends.

Second question, other than Emigrant, which I already use, is there another such company paying high rates for parking money in either a Money Mkt. checking act.

The problem I find with most Money Mkt. accounts is that they offer higher rates to get investors to make deposits, than lower the rate dramatically soon after. Then you have to switch again. It's a pain in the butt. ANy out there that don't do that AS MUCH.
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Re: Dividend re-investment & Parking money
Old 09-28-2005, 04:21 PM   #2
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Re: Dividend re-investment & Parking money

ING isn't bad for a savings account. Alternatively, you could just buy real short t-bills (like 28 day bills) which would pay about as much.

For most stocks I own that pay dividends, my discount broker (Schwab) offers automatic dividend reinvestment. I suspect that most brokers offer this service.
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Re: Dividend re-investment & Parking money
Old 09-28-2005, 04:29 PM   #3
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Re: Dividend re-investment & Parking money

Quote:
Originally Posted by modhatter
This is a two part question.* First I have heard it mentioned, but I can't remember the name of the firm to contact for purchasing and re-investing dividends. (Not dealing with the stock company itself)
Say if you have 20 different stocks that you want to hold, and re-invest the dividends.

Second question, other than Emigrant, which I already use, is there another such company paying high rates for parking money in either a Money Mkt. checking act.

The problem I find with most Money Mkt. accounts is that they offer higher rates to get investors to make deposits, than lower the rate dramatically soon after.* Then you have to switch again.* It's a pain in the butt.* ANy out there that don't do that AS MUCH.
I am getting 3.5% at a local bank, rate locked for a year. I am getting ready to move it though to pick up another quarter or half point.

JG
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Re: Dividend re-investment & Parking money
Old 09-28-2005, 04:29 PM   #4
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Re: Dividend re-investment & Parking money

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Say if you have 20 different stocks that you want to hold, and re-invest the dividends.
lots of options here. Some discount brokers offer full reinvestment and some partial (ameritrade offers only on buying full shares), so you need to look at the whole package. If you dont plan on selling often, the full reinvestment ones (td waterhouse is one) would be a good bet, but their commissions are higher.
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Re: Dividend re-investment & Parking money
Old 09-28-2005, 06:38 PM   #5
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Re: Dividend re-investment & Parking money

Since Ameritrade and TDWaterhouse have both been mentioned on this thread, it should be mentioned that Ameritrade bought TDWaterhouse recently. The two brokers should be fully merged within a year.

Also the commission price depends on the amounts of assets you have. So the $10.99 Ameritrade commisssion could be more than the $9.95 commission of TDWaterhouse (for Premium class accounts) or more than the free commission at Vanguard for Flagship accounts.
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Re: Dividend re-investment & Parking money
Old 09-28-2005, 11:41 PM   #6
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Re: Dividend re-investment & Parking money

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Also the commission price depends on the amounts of assets you have. So the $10.99 Ameritrade commisssion could be more than the $9.95 commission of TDWaterhouse (for Premium class accounts) or more than the free commission at Vanguard for Flagship accounts.
The lower com. fees at td waterhouse are for account tiers of 250k and 500k the last time I checked. My point was that lower cost brokerages are not all going to offer full div. reinvestment so look before you leap.
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Re: Dividend re-investment & Parking money
Old 09-29-2005, 08:34 AM   #7
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Re: Dividend re-investment & Parking money

For dividend reinvestment, try Buy and Hold Securities. No commissions, just a flat fee of $7 per month.

Grumpy
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Re: Dividend re-investment & Parking money
Old 09-29-2005, 11:10 AM   #8
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Re: Dividend re-investment & Parking money

Grumpy--

Could you please explain "Buy and Hold Securities"? Is this an on-line brokerage house or what? Or is this a method that any investment company would offer?

Thanks for the info.

The Professor
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Re: Dividend re-investment & Parking money
Old 09-29-2005, 01:14 PM   #9
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Re: Dividend re-investment & Parking money

Professor,

Here is the link for Buy & Hold:

https://www.buyandhold.com/

They are a broker owned by Freedom Investments Corp. They function a little differently than most brokers. You pay a flat monthly fee - either $7 per month which includes 2 free trades, or $14 per month that includes unlimited trades. They maintain a list of about 2000 companies that you can trade. The list includes virtually all of the blue chip high dividend paying stocks. You can only place market orders and they are executed only at three set times during the day (10am, 12:30 and 3 pm). The minimum buy is $50 - they will buy fractional shares. You can transfer stocks held at another broker or in a DRIP plan to Buy & Hold. They will reinvest dividends at no charge. They also have a program called EZvest that allows you invest in a basket of stocks you select. I have been using them for 4 1/2 years and am quite satisfied. For my purposes, they are the low cost option. Check them out and see what you think.

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Re: Dividend re-investment & Parking money
Old 09-29-2005, 02:42 PM   #10
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Re: Dividend re-investment & Parking money

I think sharebuilder is similar and might move to something like that if all of my drips start charging huge fees. Also, less hassle having it all in one place
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