about DRIP

[Eikfe]

I came across a CEF called CLM. They have a DRIP so that you reinvenst the distributions at the NAV price instead of the open market price.

Fidelty & etrade are able to enroll you, but IBKR, tastytrade (and probably more) do not
Why would a broker not support this? Is this about them missing commisions?

 

[ktm]

I had a friend that had me review her investment portfolio. She had a decent sized account with a top name brokerage and they had her focusing on dividends. Over the 5 year period of her latest statement the S&P was up 37% and her account was only up 4%. They were churning her account generating massive trading commissions while touting the "huge dividends and free cash flow" she was getting while bragging about the "premium/discount". There were never any sexy charts of her account vs. buy and holding the S&P or a basic index fund or anything that indicated her real actual return even before taxes.

I'm not saying they're all like this, but dividend chasers strike me as mostly elderly folks remembering 40-50 years ago when that strategy was at least competitive. IB and others just aren't into that kind of thing. And buying an index fund is probably a far superior investment if you are seeking something pretty passive.

 

[newwurldmn]

I had a friend that had me review her investment portfolio. She had a decent sized account with a top name brokerage and they had her focusing on dividends. Over the 5 year period of her latest statement the S&P was up 37% and her account was only up 4%. They were churning her account generating massive trading commissions while touting the "huge dividends and free cash flow" she was getting while bragging about the "premium/discount". There were never any sexy charts of her account vs. buy and holding the S&P or a basic index fund or anything that indicated her real actual return even before taxes.

I'm not saying they're all like this, but dividend chasers strike me as mostly elderly folks remembering 40-50 years ago when that strategy was at least competitive. IB and others just aren't into that kind of thing. And buying an index fund is probably a far superior investment if you are seeking something pretty passive.

it’s a different mentality to own dividend paying stocks. It’s no different than owning real estate. Or owning bonds to clip the coupon until maturity.

 

[BMK]

the S&P was up 37% and her account was only up 4%.

That particular portfolio may or may not have been appropriate for her, depending on her risk tolerance and her goals.

Some folks may be okay with a much lower rate of return because it means less risk, i.e., less exposure to beta.

Took me a long time to understand that LOL I used to think anyone who had money to invest that they were willing to buy and hold for 5 years or more would be flat-out crazy if they didn't put a large chunk of it in a plain vanilla index fund like SPY or DIA, or a three-fund portfolio in Vanguard, or something like that.

But that level of risk and volatility is not for everyone

 

[murray t turtle]

That particular portfolio may or may not have been appropriate for her, depending on her risk tolerance and her goals.

Some folks may be okay with a much lower rate of return because it means less risk, i.e., less exposure to beta.

Took me a long time to understand that LOL I used to think anyone who had money to invest that they were willing to buy and hold for 5 years or more would be flat-out crazy if they didn't put a large chunk of it in a plain vanilla index fund like SPY or DIA, or a three-fund portfolio in Vanguard, or something like that.

But that level of risk and volatility is not for everyone

%%
THAT;
+some people just don't study + look @ market rightly.
One lady said ''I'm expecting the market to crash like it did in 2008, that's why i'm not in the stock market.''
IF i did not know the big difference ina bear market + a crash\ i may not be in the stock market also.
MOST of the ETFs i do better with pay a dividend, most small %;
seems like the best paying diviedend ETFs long term/ prove IBD right\ ''' NEVER buy for a dividend'' even though he was talkin' stocks/ seems to apply to ETFs.
Adding to the complexity Bright Daytradin' Co liked to daytrade dividend stocks;
but i have no idea if they still do thatLOL

 

[Eikfe]

I had a friend that had me review her investment portfolio. She had a decent sized account with a top name brokerage and they had her focusing on dividends. Over the 5 year period of her latest statement the S&P was up 37% and her account was only up 4%. They were churning her account generating massive trading commissions while touting the "huge dividends and free cash flow" she was getting while bragging about the "premium/discount". There were never any sexy charts of her account vs. buy and holding the S&P or a basic index fund or anything that indicated her real actual return even before taxes.

I'm not saying they're all like this, but dividend chasers strike me as mostly elderly folks remembering 40-50 years ago when that strategy was at least competitive. IB and others just aren't into that kind of thing. And buying an index fund is probably a far superior investment if you are seeking something pretty passive.

For me this is not the case. And you didn't answer my question. Why wouldn't they offer this kind of DRIP for this stock ? Is it an administrative issue ?
Tastytrade got back to me saying their clearing partner APEX doesn't offer it.