Scottrade FRIP Purchases

A while back I had posted about DRIP vs FRIP and why I participate in the FRIP program in Scottrade. My dividends have been accumulating in FRIP for all my 3 Scottrade accounts since around the beginning of the year. By last week, I had accumulated over $1200 combined across all 3 accounts. I decided to make the purchase using the FRIP dollars and hence placed the orders on Friday to be executed on Monday. The following are the FRIP purchases I made on 12/8/2014. 

  • PG – 5 shares@90.68
  • PM – 4 shares@86.61
  • BP – 9 shares@38.84

I decided to add to my positions in the above stocks rather than initiating new positions. PG has been on my add list for long time now and I thought that adding few shares free of commission doesn’t hurt. Same goes with PM as well. PM shares have not performed compared to the peers and I thought this will be a good time to add to it. BP has been another stock that has been hit hard by the oil price decline. I recently added COP in November and again in December as regular purchases. So added BP instead through FRIP since I did not add to my BP position since I initiated it a while back.

I invested total of $1,149.40 for the 3 purchases. Since these were FRIP purchases, there was no commission. These purchases add $50.45 to my annual projected dividends. This results in a yield of 4.39%. I still have about $140 remaining in the FRIP balance across the 3 accounts. I expect to receive some more dividends through the remainder of the month. So I plan to execute another set of FRIP trades if possible by the end of the year.

I will continue to participate in FRIP program and plan to invest the FRIP dollars twice a year since that will give enough time to accumulate some dollars.

Disclosure: Long on all stocks mentioned above

6 thoughts on “Scottrade FRIP Purchases

  1. DGJ,

    Gotta love commission-free purchases. That FRIP is a nice tool for sure. Looks like you really let the dividends stack up!

    PM is one that continues to fly under the radar. But the yield and growth should provide more than satisfactory returns over the long term.

    Best regards.

    • Thanks DM. I signed up for FRIP sometime early this year and left the funds accumulate. Even though the total seems big, it was spread across 3 accounts and hence I left it until the end of the year. Hopefully with increased dividends next year, I can make purchases twice a year.

      Thanks for stopping by.

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