DRIPs in a Roth IRA
I just noticed that TD Ameritrade, where my Roth IRA is parked, has beefed up it’s dividend reinvestment plan program. Previously, they only allowed whole share purchases, which required more capital than I had in the account, unless I put all my eggs in one basket. This account is the only one where we own individual stocks, but I don’t speculate too much. Most of the money is in large cap stocks with good payouts.
When I logged in recently to do some year end clean up, I noticed that they were promoting a new DRIP program. Basically, you send them an email detailing which stocks you want to enroll in and you can start reinvesting the dividends into fractional share. I just shot them an email after a bit of pondering, so am anxious to see how it works out.
I will be posting an update of my experience.
Filed under: Finance and Investing
