A while back I had posted about DRIP vs FRIP and why I participate in the FRIP program in Scottrade. I started participating in FRIP early last year and my dividends have been accumulating in FRIP for all my 3 Scottrade accounts. My first set of FRIP purchases were in early December and I purchased PG, PM and BP. I invested close to $1,150 across these 3 stocks without paying any commission. I had also mentioned that I will be making FRIP purchases about twice a year.
But when I checked my FRIP balance early last week, it was little over $600 across my three accounts. So I decided to make my next set of FRIP purchases on Friday last week (3/6/2015). The following are the FRIP purchases I made on 3/6/2015.
- F – 16 shares@16.04 ($256.64)
- PM – 2 shares@80.38 ($160.76)
- BP – 5 shares@40.48 ($202.40)
I decided to add to my positions in the above stocks rather than initiating new positions.
- My existing purchase in F was from long ago and haven’t added to the stock since then. This is not a typical dividend growth stock, but F has started increasing the dividends now and with several new model launches in 2015 and 2016, I am thinking that the stock will start to see some movement soon.
- I added 19 shares of PM on Friday (3/6/2015) in addition to these 2 shares though FRIP. 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. My initial purchase was in September and I added few shares in December through FRIP. Also, since adding COP in early December, I haven’t made any oil related purchases . So decided to add BP a bit more to average down my price.
I invested total of $619.80 for the 3 purchases. Since these were FRIP purchases, there was no commission. These purchases add $29.60 to my annual projected dividends. This results in a yield of 4.77%. Like I mentioned above, I will continue to participate in FRIP program and plan to invest the FRIP dollars every quarter since that will give enough time to accumulate some dollars, but at the same time I can have the dollars working for me sooner.
Disclosure: Long on all stocks mentioned above
Dividend Growth Journey 
I’m glad to see someone advocating FRIP! I’ve been enrolled since inception but have been making monthly purchases through the program. I think I will adjust my time horizon to quarterly or longer to allow the capital to build up like you mentioned. I’m new to divided investing (although I’ve owned a few dividend stocks for a while now) and have been thinking that I was missing out by not having the option to automatically reinvest dividends into fractional shares, etc. This post and another recent one by DM helped remind me that it is not unwise to go about it this way. Thanks.
Thanks QS. Like I mentioned, with quarterly purchases going forward, I can have reasonable capital and at the same time making them work sooner instead of waiting until the end of the year.
As my dividends grow, the duration can be adjusted accordingly.
Thanks for stopping by.
DGJ
I don’t own these stocks right now but I can see the opportunity for you. Adding to positions we like and trust at fair price is always a good buy anyway!
Thanks DivGuy. These small purchases once in a while definitely helps. It gives the flexibility to choose the stocks you want to invest in and the timing as well.
Best Wishes
DGJ