|
Merrill Edge DRIP: Dividend Reinvestment in 2023
Merrill Edge dividend reinvestment program fees and enrollment. Merrill Edge DRIP
plan on stocks, ETFs, and mutual funds. Is it free?
|
Merrill Edge DRIP Plans
Stocks and ETF’s sometimes pay cash dividends. When this happens, some brokers will allow you to reinvest this money in additional shares of the security that pays the distribution; although not all broker-dealers provide this service. Merrill Edge does, and the brokerage house charges nothing for it.
How to Reinvest Dividends on Merrill Edge
Merrill Edge has created a very convenient way to manage the DRIP settings for each security in your account. You can adjust these settings all by yourself simply by going to ‘Help & Support’ in the top menu of the broker’s website and choosing ‘Dividend Reinvestment Settings’ under ‘Account Preferences.’
You will first need to select your brokerage account from the drop down menu that says, ‘Please select an account.’ If you have more than one account, you have to establish DRIP settings for each one.
The default setting is for cash payments for all securities in an account. This can be changed to reinvest dividends for specific equities, or reinvest dividends for all securities in an entire account.
Merrill Edge Promotion
Open Merrill Edge Account
Merrill Edge Dividend Reinvestment Fees
Merrill Edge does not charge fees to use its automatic dividend reinvestment plans.
Merrill Edge Mutual Funds DRIP
The same form can be used to establish reinvestment settings for mutual funds. Merrill Edge also provides reinvestment settings on its mutual fund order form. Distributions can be paid in cash, capital gains only can be reinvested, or both dividends and capital gains can be reinvested.
DRIP Policies at Merrill Edge
Unlike the broker’s mutual funds, stocks and ETF’s do not have a dividend reinvestment option on the equity order page. Trades for these securities must settle before you can add a DRIP setting.
Purchasing additional shares of a security will not alter its distribution settings. You can change DRIP settings after the trade settles if you wish.
If you own shares of the same security in multiple accounts, you’ll have to specify reinvestment settings for that security within each account.
Be sure to update your DRIP settings before the record date of a dividend. Your request will not be honored for the upcoming payment if the request is received after the record date.
Altering reinvestment settings for optional or special dividends will not impact these types of distributions. You should contact Merrill Edge directly to specify your preference for these cash payments.
Competitors With DRIP
Withdrawing Cash Distributions
If you decide to take dividends in cash, you can easily withdraw the funds from a Merrill Edge account using a variety of methods. One is to request a Visa debit card for your brokerage account and withdraw funds using the card at a point-of-sale terminal or an ATM. The broker offers debit cards free of charge. Checkwriting is also available.
Automatic Investment Plan
If you want to grow your investments even more, you could add an automatic investment to a security. Merrill Edge offers dollar-cost averaging and automatic investment plans. In addition to reinvesting dividends and capital gains, you would make regular purchases, typically on a monthly basis.
Other DRIP Plans
Other online broker dividend reinvestment plans for 2023 are listed under this link.
Merrill Edge Promotion
Open Merrill Edge Account
Merrill Edge Review
Read complete Merrill Edge Investing Review »
Take a look at current Broker Incentives »
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
|