I started with Scottrade in an IRA and regular account, but a few years back switched to Schwab, which has a “toggle” that you can check to reinvest or not at any time. It buys fractional shares. I have been very pleased. Schwab also has many of the good traits of Scottrade (low trading costs), although I find the website a bit more difficult to navigate in some respects. Good luck-

Cory

UK dividend investors might want to Google “Barclays Capital Equity Gilt Study” to find similar research that proves the importance of dividends in the UK.

Best Wishes,
D4L

Yes, dividends are taxed in US at a rate of up to 15% depending on your annual income even if you reinvest them.

Thanks guys!

First the operative word is “additional”. Let’s say hypothetically I invest $3,000/month and the dividends I earned during the month were $600. What I do is add the $600 to the $3,000 and invest it in where my asset allocation needs are. Thus I only spend $7 in commissions on the full $3,600, which is what I would have spent on the $3,000. Thus, no “additional” commission. The same would be true if I normally used the $3,000 to buy 3 different securities each month. Instead of investing $1,000 in each of the securities, I would invest $1,200 in each, again my commission is the same as it would have been without the dividends ($21 in this example). The only way I pay more commissions is if I independently invest the $600 in addition to what I normally would have done, thus increasing my commission by $7.00.

The above works for a taxable account that is funded each month. For my Roth IRA, I let the dividends accumulate to the minimum needed for an additional investment in a selected mutual fund, usually $50 to $100 for an IRA account. Once it reaches that level I invest in the mutual fund. Then once I add $1,100 to the mutual fund I withdraw $1,000 and purchase another income investment and start the process over.

Again, sorry for the confusion.

Best Wishes,
D4L