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Linn Co, LLC Message Board

  • crankybuzrd777 crankybuzrd777 May 13, 2013 5:04 PM Flag

    Scottrade/dividends

    are you kidding me? Because of LNCO going monthly I have been re-evaluating the situation. What I just found out... was that in June... dividends can be reinvested free... drip, right? With a new twist. Dividends will be put in a pool... and you can invest them in any stock you want FREE. Forgive me if this is not new news to you, but it sure is to me!! Can't wait!!! I have several dividend stocks... and can now accumulate them and put them to work were and when I want the money invested. Nice.................

    Sentiment: Strong Buy

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    • dutch773@sbcglobal.net dutch773 May 15, 2013 12:16 PM Flag

      Re-investing Divis commission free is not new, all brokers will do it. Some make the accounting easy, some not so much. In fact, some companies have arrangements with a limited number of brokers that even give you a DISCOUNT on the PPS of a point or two when re-investing - that is a true Drip Program. I haven't seen that anybody is offering that for LNCO.

      Now, the twist you mention; "Dividends will be put in a pool... and you can invest them in any stock you want FREE" - that is news. How long can you hold funds in that pool and do they still garner interest as cash? I can see rolling up 10's of thousands in such a pool and using it to take up whole new positions, not re-invest them at all, and save commissions. Nice, because you could build a new position in small, incremental lots without inflating your cost basis with fees.

      Are you sure that's the deal?

      • 1 Reply to dutch773
      • you are correct. Drip is not new. But it is new to Scottrade users... and as is suggested, one can put the divs in a pool ...use the divs toward other purchases... free. I was just pleased that Scottrade did ANYTHING... lol. And can't believe the timing... now that LNCO is going monthly. It all starts June, 1... is what I was told. Now, to get this LNCO off its butt and get moving!!!

        Sentiment: Strong Buy

    • The biggest advantage is that it will be commission free. Essentially you can do the same thing now with cash received from dividends. And not that it matters much, but I don't think it will trade in fractional shares (so if you received $123.13 from a company, you'd have to round it to whole shares). Would be nice if they offered both options.

 
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