Knowledge Center

Navigating Scottrade’s Flexible Reinvestment Program Page

Scottrade's Flexible Reinvestment ProgramTM (FRIPTM) offers you a commission-free way to reinvest dividends from most dividend-paying stocks or exchange-traded funds that you own into eligible* securities. This is done in a two-step process. First, dividends in your account will flow into the FRIPTM pool (or “Program Balance”). Then you decide how and when to reinvest the funds in your FRIPTM pool. In this section, you will find definitions to key components of the Flexible Reinvestment ProgramTM page.

My Equity Positions Paying Dividends: These are the securities whose dividends will accumulate into the program. By default, all dividend-paying equities will be included.

Include in Program: All eligible dividend paying securities are automatically listed as “yes,” and are therefore included in the program. By clicking “no,” you will exclude dividends from that security from accumulating into to FRIPTM dividend pool or Program Balance.

Total Estimated Payment: The anticipated dividend you will receive from this security on the Next Pay Date.

Select Security to be Purchased using Program Balance: To add a security, type a ticker symbol into the box marked “Enter Symbol.” You also must decide what portion of your pool you want to allocate to a security. To add second and subsequent securities, click “+Add another security.” You may choose up to five eligible securities to reinvest your dividends. The total allocation of your dividend purchases must be 100%.

Select Reinvestment Frequency: Select either “Monthly” or “Quarterly” and the first date to begin your reinvestment program. For example, if you select “Quarterly” and “Feb. 2, 2013,” the first date a trade could occur would be Feb. 2, 2013. The next would occur on May 2, 2013, followed by Aug. 2, 2013. If you choose the same date, but selected “monthly,” the first possible reinvestment date would be Feb. 2, 2013, the second would be March 2, 2013, followed by April 2, 2013, and so on. If a date falls on a non-trading day, the prior full-day trading date will be substituted.

Current Program Balance: This tells you how much money is available for reinvestment in your Flexible Reinvestment ProgramTM.

Program Order Status: Here you will find the securities you've picked to reinvest your dividends, along with the percentage allocation you've give each and the amount of money allocated to each security by the program.

Estimated Order: If there are sufficient funds to buy at least one share of each security in your program, while maintaining your allocation level, the program will generate an estimated order amount for your next reinvestment date. If there aren't enough funds to acquire at least one share of each security, while maintaining your allocation percentage, the estimated order amount will be zero.

If you have further questions, please check out our list of frequently asked questions about FRIPTM.

Get ideas on how to utilize FRIPTM for your investment strategies.

*Marginable equities are eligible with the Program Balance, as defined in the Flexible Reinvestment Program™ Terms and Conditions.

Bank Accounts, Making Deposits, Order Types, Trading Topics, Margin Account, Finding Your Next Trade, ScottradeELITE, Dividend Reinvesting
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The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.