Scottrade’s Flexible Dividend Reinvestment: An Overview

Scottrade's Flexible Reinvestment Program™ provides a commission-free way for you to invest dividends from most dividend-paying stocks or exchange-traded funds (ETF) that you own into eligible* stocks or ETFs. With FRIP™, you'll be able to use cash from dividends to buy most securities at no commission in a way that fits your investment strategy.

FRIP™ is different than a traditional dividend reinvestment program (DRIP), which requires you to reinvest dividends back into the securities that generated them. With FRIP™, dividends accumulate into a pool of funds. Those funds are then used to automatically purchase most stocks or exchange-traded funds of your choosing.

If you enroll in FRIP™, you will have the following flexible choices to make:

  • Choose which dividend-paying securities you want to include in the program. After enrolling, any dividend-paying equity is included automatically.
  • Select up to five eligible stocks or exchange-traded funds that you want to buy using your FRIP pool.
  • Select the date you want orders placed.
  • Determine the frequency of your trading, either monthly or quarterly.

You can change your FRIP options at any time.

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



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.