09-02-2013, 04:00 PM
(08-20-2013, 12:22 PM)Dan Mac @DGSInvesting Wrote: I do a manual reinvestment of my dividends. I collect the dividend income and combine with my monthly savings to decide on which company I want to purchase each month. This allows me to invest in the company I believe to offer the best value or that I want more exposure to at any given time.
My broker Scottrade initially didn't have a DRIP service but now they do. They allow you options such as reinvesting in the company that paid the dividend or electing to reinvest all dividends from your portfolio to just a few select companies. I personally haven't had the chance to look more into it as I still like making the manual decision each month.
I do exactly the same for the same reasons. The reinvestment cost is zero, while you get the best value.