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