I guess I never watched this as closely as I did today. I received my dividend today and realized my DRIP process resulted in the new shares being purchased at $18.21. I called Fidelity to find out why the stock price was so high. Fidelity said, since it takes 3 days to settle the stocks purchased with DRIP, the stocks were purchased 3 days prior to the dividend payment. Fidelity said that all DRIP programs are operated that way in order for the stocks to be settled to the account on the day of the dividend payment. I asked why the stock purchase wasn't made on the day of the dividend payment and then take 3 days to settle the account? That would make more sense to me. His response was that a lot of people have asked that same question and he didn't have an answer except to say this is the way it's done.
As of 7:58 PM today (Oct 28), still no sign of the NLY dividend in my retirement account.
I have them do the reinvestment (unless you already have thousands of shares, you don't have enough to significantly reinvest yourself). For the four stocks I do this on, I have always been treated fairly, paying a stock price that was about the average of the day's high and low (day of dividend dist.), and NO commision charge or other fees. I expect to see this all in my account tomorrow (Friday, Oct 29).
If I were the house and had NLY shares sitting around in a house account, I would deliver them to your DRIP account and replace the house shares in the open market. Its a no lose situation for them on these big down days that happen to coincide with dividend payment day. A "no risk" way for them to average down. Take the cash and make your own decision what to do with it.
I bought into nly a week before the x div day,& still as of 6:00 this evening have not seen any dividend show up on my acct. I traded through ameritrade. Does anyone on this board trade through ameritrade, & if so, do they show a dividend yet??? Thanks for any response.
Would anyone care to indulge a really stupid question? If a lot of people own stocks and reinvest the dividends, can a stock ever run out of "stock"?? ie. does a company ever sell every share so that you can't reinvest dividends?
No, they cannot run out of stock, they will issue new shares OR usually people will sell shares because if they are running out of shares because the price is way up. Commonly called market forces.
The stocks purchased through DRIP are purchased on the open market by the broakage company in anticipation of the dividend payment --thus the price of $18.21 which was near the close on Monday. Three days before dividend payment. As long as there is a market for the stock, buyers and sellers, they can't run out of stock for the DRIP.