http://biggestdividend.com/2009/01/08/how-do-dividends-and-dividend-reinvestment-plans-work-with-stocks/#comment-6 gosh137 Fri, 09 Jan 2009 14:30:44 +0000 http://biggestdividend.com/2009/01/08/how-do-dividends-and-dividend-reinvestment-plans-work-with-stocks/#comment-6 "Do I select whether I want dividends to be reinvested or not.." Depends on who you use as a broker. Most let you decide. Scottrade does not reinvested dividends (unless you pay their $7 buy fee). Sending checks are expensive for brokerage houses so they would rather have the cash show up in you money market account. They usually supply a checkbook with the account for you to write checks as needed. If you select to reinvest, on the day the dividend is paid, they buy more shares for you at the market price. “Do I select whether I want dividends to be reinvested or not..” Depends on who you use as a broker. Most let you decide. Scottrade does not reinvested dividends (unless you pay their $7 buy fee). Sending checks are expensive for brokerage houses so they would rather have the cash show up in you money market account. They usually supply a checkbook with the account for you to write checks as needed. If you select to reinvest, on the day the dividend is paid, they buy more shares for you at the market price.

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