01-22-2018, 09:08 PM
(This post was last modified: 01-22-2018, 09:10 PM by Dividend Watcher.)
(01-22-2018, 05:20 PM)cannew Wrote:(01-22-2018, 09:16 AM)rapidacid Wrote: TD Ameritrade buys partial shares
TD Ameritrade will initiate the purchase on the first business day following the dividend payable date or the first business day following confirmation of receipt of dividend funds. If the combined funds do not total the purchase price of at least one share, the distribution will not be reinvested"
If you look at the paragraph that immediately precedes the quote, you will find:
Quote:TD Ameritrade will combine eligible cash distributions from my account with those from other TD Ameritrade clients requesting dividend reinvestment in the same security and use these combined funds to purchase securities on my behalf and on behalf of these other clients. ...
I've always received partial shares for over 30 years. Even when Waterhouse Securities was one of the predecessors to TD Ameritrade and a touch-tone phone trade commission (the cheapest method to trade) was $39.95.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan