TD Ameritrade 300

TD Ameritrade Dividend Reinvestment Program (DRIP)

2022 TD Ameritrade dividend reinvestment plan fee, cost and setup. Automatically reinvest in fractional shares. Thinkorswim / TD Ameritrade DRIP plan enrollment for stocks, mutual funds, ETFs, and ADRs. Is it free?

TD Ameritrade DRIP Plans

Investors at TD Ameritrade can sign up for the broker’s Dividend Reinvestment Plan, also known as DRIP. There is no charge for this service, and it can be used for stocks, exchange-traded funds, and many American Depository Receipts (ADR’s).

TD Ameritrade Dividend Reinvestment Fee

TD Ameritrade does not charge fees or commissions to use its automatic dividend reinvestment plans.

Open TD Ameritrade Account

Open TD Ameritrade Account

Enrolling in TD Ameritrade DRIP

To sign up for the broker’s DRIP service, click on ‘My Account’ at the top of the TD Ameritrade website. In the drop-down menu that appears, select ‘Dividend Reinvestment.’ Here, you will find helpful information on reinvesting cash dividends.

The broker’s AI bot Ted appears in the upper-right corner of the screen with pre-selected DRIP questions. If you have any other questions about TD Ameritrade’s dividend reinvestment service, this would be a good way to find answers. If you need any assistance from an actual human representative, you can contact the broker at 1-888-871-9007.

Next to ‘Stock & ETF Dividends’ appears ‘Enroll/Edit.’ Clicking on this link will produce an enrollment page. Here, individual stocks and ETF’s can be set up for DRIP service, or an entire account can be enrolled.

The broker usually takes three business days to complete a DRIP application. After enrolling specific securities or an entire account, they can be unenrolled at a later date. When fractional shares are added to a position, TD Ameritrade does not charge any commissions.

Fractional Shares

Technically speaking, there is no such thing as a fractional share. It is an accounting service that TD Ameritrade and other broker-dealers provide to their customers. The brokerage firm pockets the cash dividend and then credits your account the equivalent number of shares from the issuing security, based on prevailing market price. TD Ameritrade offers fractional shares out to three decimal places.

If you want to liquidate an entire position in an enrolled security, only whole shares will be sold, and the order page will not show a fractional share. To see current fractional shares, go to ‘My Account’ and choose ‘Positions.’ Alternatively, they are published on monthly statements. E-statements can be located by going to ‘My Account’ and then clicking on ‘History & Statements.’

TD Ameritrade will exchange the remaining fractional share for cash at a market price. If an account is transferred to another broker, the broker will liquidate all fractional shares and deposit the proceeds as cash in the account.

TD Ameritrade Website

Open TD Ameritrade Account

Mutual Fund Reinvestments

The broker also offers reinvestments of mutual fund distributions. These typically include dividends and capital gain distributions. Either of these can be enrolled, or both. It’s possible to register a single fund or an entire account.

TD Ameritrade clients can also sell fractional shares of mutual fund positions. To do so, go to ‘Trade’ and then select ‘Mutual Funds.’ Then select ‘Sell.’ To view current mutual fund fractional shares, simply take a look at your positions or your most recent monthly statement.

After a mutual fund is enrolled for reinvestments, the status can be changed at a later time.

TD Amеrіtrаdе Mutuаl Fundѕ

Thеrе аrе оvеr 13,000 mutuаl fundѕ fоr іnvеѕtоrѕ tо buу аnd ѕеll аt TD Amеrіtrаdе. Thе brоkеr hаѕ 4,200 fundѕ thаt hаvе nо trаnѕасtіоn fее. Almоѕt 2,000 оf thеѕе аlѕо hаvе nо lоаd. Thе brоkеr'ѕ wеbѕіtе hаѕ а vеrу uѕеful ѕсrееnеr thаn ѕсаnѕ thrоugh аll оf thеѕе fundѕ bаѕеd оn сrіtеrіа thе uѕеr ѕеlесtѕ. Thеѕе саn іnсludе Mоrnіngѕtаr rаtіng, grоѕѕ еxреnѕе rаtіо, mаnаgеr tеnurе, NAV rеturn, аnd muсh mоrе. Bеуоnd thе ѕсrееnеr, TD Amеrіtrаdе аlѕо оffеrѕ а wіdе ѕеlесtіоn оf еduсаtіоnаl vіdеоѕ оn mutuаl fundѕ. Subјесtѕ іnсludе hоw tо сhооѕе а fund, hоw tо соmраrе оnе tо а mоdеl роrtfоlіо, аnd hоw tо uѕе thе brоkеr'ѕ Prеmіеr Lіѕt оf fundѕ. 

TD Ameritrade DRIP Program

Thе mіnіmum іnvеѕtmеnt аmоunt аt TD Amеrіtrаdе fоr mutuаl fundѕ rаngеѕ frоm zеrо tо $5 mіllіоn. It dереndѕ оn thе ѕресіfіс fund. Thе rеquіrеd mіnіmum fоr а fund іn аn IRA аlѕо vаrіеѕ bаѕеd оn thе раrtісulаr рrоduсt. TD Amеrіtrаdе dоеѕ nоt іmроѕе аnу fееѕ fоr ѕmаll bаlаnсеѕ іn а fund. Trаnѕасtіоn-fее fundѕ wіll ѕеt іnvеѕtоrѕ bасk $49.99. Rеgrеttаblу, thіѕ сhаrgе іѕ аррlіеd tо bоth thе ѕеll аnd buу ѕіdеѕ. If а nо-trаnѕасtіоn-fее fund іѕ hеld fоr lеѕѕ thаn 6 mоnthѕ, а ѕhоrt-tеrm fее оf $49.99 іѕ сhаrgеd. 

TD Ameritrade DRIP Plan Disclaimer

For the most recent information on TD Ameritrade dividend reinvestment program (DRIP) visit their website.