Earlier this week, Scottrade launched a unique dividend reinvestment service to its clients seeking more choices in their strategies for dividend paying equities. The new program is called the Flexible Reinvestment Program and it is immediately available to Scottrade clients.
Dividend reinvestment programs are common among online brokerages, but Scottrade set out to make this program unique. What makes the Scottrade Flexible Reinvestment Program different? In a typical Dividend Reinvestment Plan (DRIP), dividend-paying equities can only be reinvested back into shares of that specific equity. With Scottrade’s Flexible Reinvestment Program, dividends are allowed to flow into a pooled program balance. Clients are then able to tap into that pool of money to buy up to five securities of their choosing. The securities selected do not have to be the securities that contributed the dividends. The best part about the whole plan for Scottrade clients is that this pooled money can purchase any security and the transaction is commission free. Most stocks and ETFs are eligible in this program.
Justin Gioia, vice president of Investor experience at Scottrade, said that the goal of this program is to take dividend reinvesting one step further. He said, “Clients looking for maximum choice and flexibility in their dividend investing decisions will find our Flexible Reinvestment Program an important service that adds a lot of value to their Scottrade relationship.”
Scottrade is definitely thinking outside the box and setting the bar high with this one-of-a-kind Flexible Reinvestment Program. The popularity of dividend reinvestment plans has grown by leaps and bounds in recent years, and more investors than ever are looking for dividend-paying equities.
For more information on this program click here for the full press release.