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.................
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.
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!!!
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.