1/3/2023 0 Comments Thinkorswim fractional shares![]() ![]() How You Can Benefit from Fractional Shares You might be surprised to find a number that stretches out three decimal places. ![]() If you have a dividend reinvestment program (DRIP) with the mutual funds in your 401(k), check out exactly how many shares of each you own. The share price is $280, but you’ll be allowed to buy 0.1785 shares of SPY with the $50 dividend you get each quarter. You also want those dividends reinvested into the ETF, but you only own 20 shares for about $50 in dividends per quarter. The SPY also has a 1.83% dividend yield, which means you’ll get about $5 in dividends per share for the year (or $1.25 each quarter). Currently, that’s a $5,500 investment at $280 per share. Say you have 20 shares of SPY, the SPDR S&P 500 ETF. Fractional shares can sometimes be created after a 3/2 stock split or when a dividend is issued and immediately reinvested in a security. Buy small fractions of shares and you can quickly build up a diverse portfolio of stocks without using mutual funds or ETFs. What to Look out for with Fractional Sharesįractional shares are smaller portions of a stock equal to less than one share.How You Can Benefit from Fractional Shares. ![]()
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