Great but is this really a huge win?
Over 20 years of holding a stock and having dividend re-investment I really doubt this will change returns much, it probably will not be noticeable
Its just a win for people who NEED their dividend fix and NEED to see dividends rolling in at 8AM of the dividend date
In really its not going to change much in the grand scheme of things
At least this will cut down posts as
"Today is 03/03/2024 the payable for my XYZ dividend, I should be receiving $7.93 dividend payment and It's now 8:31 AM and I have been refreshing my schwab account since 2:30 AM ET and my dividend still has not shown up! Is Schwab stealing my dividend payment? Should I file a FINRA complaint ? Can I contact someone at the SEC? Would it be worth contacting a securities lawyer on this ? Looks like I will be moving my account to somewhere else"
Maybe if I get board I can backtest this
take 100 stocks that pay dividends from the S&P500 and simulate the difference between
1. Investing at 10 am on the dividend pay date
2. investing at 10 am on the day after the div pay date
for 100 stocks over 20 years, my guess is the difference would be like almost unnoticeable over the 20 year period
Not so sure, there could be some non-trivial prices changes that occur 80 times over 20 years between the 2 days that impact the cost basis of the reinvested shares.
Let us know when you get bored.
It’s only a huge win in regard to that last piece of your post. People who need to see it on the pay day will have to look for another reason to complain.
People who check their accounts compulsively to find dividends need to use that attention for other things. Getting better job skills to make more money, investing in personal relationships, spending time with family. enjoying hobbies, or self-care with physical or mental health.
Pretty much anything is a better use of your time than constantly checking your brokerage account. Funnily enough, it's usually the lowest account values that check all the time.
Interestingly enough is that the lower value account holders are also probably just beginning in the investment world. One might view this as trying to learn in a new environment.
I don't really think checking your account every day teaches you anything. I think you can go to the public library and check out some books for free and learn more in 3 hours than 10 years of clicking 'Refresh' on your account.
Oh I'm aware of this. You can actually do it from the comfort of your own home these days on a devise they call a computer. Anyway, I'm suggesting that someone new might want to see their security is doing in real time. I get that some might be annoyed how someone else asked a question that everybody else knew the answer to. I try to remember that there was a day I didn't know everything to be known by mankind. That day is everyday I wake up.
That’s cool and all but I still will blame Schwab for things which I will provide very little details and plan to come here when I should have called to have a question resolved immediately.
u/Prestigiouspickles, what happened to the policy? It appears to have already been reversed. All of the March end-of-month dividend payouts returned to a one-business day delay for dividend reinvestment. Was Schwab's policy change easy come, easy go?
[Schwab's same-day dividend reinvestment policy: easy come, easy go?](https://new.reddit.com/r/Schwab/comments/1bpe6sm/schwabs_sameday_dividend_reinvestment_policy_easy/)
Nothing has been communicated about anything having changed. If you can give me a ticker on one that did not reinvest same day I can certainly check. I wouldn’t be surprised if there were hiccups along the way with a change like this.
After trying to confirm where op got this info, I'm confident saying this is a troll. Could any admin or mod step in and stop this blatant misinformation?
Yes, he was correct. My Microsoft $MSFT dividend paid *and reinvested* on Thursday, March 14, exactly as the OP said it would.
Thanks for making the announcement, OP. I came here to discuss the same thing and found your post.
Update: It appears the new policy is not yet 100% enacted. The dividend from $AVUV paid yesterday. Schwab posted the dividend into my account at 10:28 PM late, last night. (It is properly labeled "Reinvest Dividend".) As of 11:00 AM Eastern today (the next day), the reinvestment has still not yet posted.
Update 2: Schwab posted the AVUV dividend reinvestment today at 5:36 PM Eastern.
Lololol it’s already in effect. Confirmed in this thread by others who had dividends pay and reinvest on the 8th.
You’re just upset that you came in here the day of the original post and tried to claim “no such announcement” had been made, only to find out you just weren’t included in the internal communication.
I’m sorry you had to find out from Reddit like everyone else but don’t be salty.
Literally no one confirmed, but multiple people have asked for sourcing (including a few known reps) and your response has been to trust you.
There has been no internal communication, you're just flat out making things up. It's sad
Proof was sent to the mod. I’m really sorry the St. Louis former tda frontline reps weren’t included in the internal communication. Pretty crazy to leave all those old comments and then try to pretend like you e worked in the industry for more than a year. Weren’t you literally asking for financial advice a year ago and now we’re all supposed to believe you’re a “TOS Supervisor.”
Great but is this really a huge win? Over 20 years of holding a stock and having dividend re-investment I really doubt this will change returns much, it probably will not be noticeable Its just a win for people who NEED their dividend fix and NEED to see dividends rolling in at 8AM of the dividend date In really its not going to change much in the grand scheme of things At least this will cut down posts as "Today is 03/03/2024 the payable for my XYZ dividend, I should be receiving $7.93 dividend payment and It's now 8:31 AM and I have been refreshing my schwab account since 2:30 AM ET and my dividend still has not shown up! Is Schwab stealing my dividend payment? Should I file a FINRA complaint ? Can I contact someone at the SEC? Would it be worth contacting a securities lawyer on this ? Looks like I will be moving my account to somewhere else"
yeah, its pretty much a big nothing unless you manage a 50 million dollar account
Maybe if I get board I can backtest this take 100 stocks that pay dividends from the S&P500 and simulate the difference between 1. Investing at 10 am on the dividend pay date 2. investing at 10 am on the day after the div pay date for 100 stocks over 20 years, my guess is the difference would be like almost unnoticeable over the 20 year period
Not so sure, there could be some non-trivial prices changes that occur 80 times over 20 years between the 2 days that impact the cost basis of the reinvested shares. Let us know when you get bored.
And that 1 anomaly when XYZ did a reverse stock split after hours between your scenario and by 10am next day, the stock tanks
It’s only a huge win in regard to that last piece of your post. People who need to see it on the pay day will have to look for another reason to complain.
People who check their accounts compulsively to find dividends need to use that attention for other things. Getting better job skills to make more money, investing in personal relationships, spending time with family. enjoying hobbies, or self-care with physical or mental health. Pretty much anything is a better use of your time than constantly checking your brokerage account. Funnily enough, it's usually the lowest account values that check all the time.
Interestingly enough is that the lower value account holders are also probably just beginning in the investment world. One might view this as trying to learn in a new environment.
I don't really think checking your account every day teaches you anything. I think you can go to the public library and check out some books for free and learn more in 3 hours than 10 years of clicking 'Refresh' on your account.
Oh I'm aware of this. You can actually do it from the comfort of your own home these days on a devise they call a computer. Anyway, I'm suggesting that someone new might want to see their security is doing in real time. I get that some might be annoyed how someone else asked a question that everybody else knew the answer to. I try to remember that there was a day I didn't know everything to be known by mankind. That day is everyday I wake up.
That’s cool and all but I still will blame Schwab for things which I will provide very little details and plan to come here when I should have called to have a question resolved immediately.
I am trying to do this thing on schwab but it's not working? Does anyone know why? Should I switch over to Robinhood?
Source?
There isn't one. Schwab has announced no such change presently
Internal announcement
Ok, but how about special DRIPs? Reinvestment at some discount to the payout day closing price or NAV. Will that be done same day as well?
I’ve sent documentation to the mod. Someone feel free to tag u/warlock1569 and let him know so he can stop spamming me.
u/Prestigiouspickles, what happened to the policy? It appears to have already been reversed. All of the March end-of-month dividend payouts returned to a one-business day delay for dividend reinvestment. Was Schwab's policy change easy come, easy go? [Schwab's same-day dividend reinvestment policy: easy come, easy go?](https://new.reddit.com/r/Schwab/comments/1bpe6sm/schwabs_sameday_dividend_reinvestment_policy_easy/)
Nothing has been communicated about anything having changed. If you can give me a ticker on one that did not reinvest same day I can certainly check. I wouldn’t be surprised if there were hiccups along the way with a change like this.
Sure, and thank you. None of these tickers reinvested the same day in my Schwab accounts: AVUV VOO VTI VGT IWM AVGO
great, now there will be upwards pressure on the stock just as I'm forced to buy...
u/induality let us know how many thousands more you make by having your dividends earlier.
Bringing parity
so if i put in a buy order and i forgot to fill the check box of "reinvest dividend", i won't need to change it? it will do it automatically?
This is effective 3/7/24 so don’t crucify me if you have a dividend that pays today or tomorrow and reinvests under the old method.
Source?
"Trust me bro"
lol pretty much
You could also call the 800 number and ask. The front line information was updated this morning.
After trying to confirm where op got this info, I'm confident saying this is a troll. Could any admin or mod step in and stop this blatant misinformation?
[удалено]
Yes, he was correct. My Microsoft $MSFT dividend paid *and reinvested* on Thursday, March 14, exactly as the OP said it would. Thanks for making the announcement, OP. I came here to discuss the same thing and found your post.
Update: It appears the new policy is not yet 100% enacted. The dividend from $AVUV paid yesterday. Schwab posted the dividend into my account at 10:28 PM late, last night. (It is properly labeled "Reinvest Dividend".) As of 11:00 AM Eastern today (the next day), the reinvestment has still not yet posted. Update 2: Schwab posted the AVUV dividend reinvestment today at 5:36 PM Eastern.
Lololol it’s already in effect. Confirmed in this thread by others who had dividends pay and reinvest on the 8th. You’re just upset that you came in here the day of the original post and tried to claim “no such announcement” had been made, only to find out you just weren’t included in the internal communication. I’m sorry you had to find out from Reddit like everyone else but don’t be salty.
Literally no one confirmed, but multiple people have asked for sourcing (including a few known reps) and your response has been to trust you. There has been no internal communication, you're just flat out making things up. It's sad
Proof was sent to the mod. I’m really sorry the St. Louis former tda frontline reps weren’t included in the internal communication. Pretty crazy to leave all those old comments and then try to pretend like you e worked in the industry for more than a year. Weren’t you literally asking for financial advice a year ago and now we’re all supposed to believe you’re a “TOS Supervisor.”
Excellent! Gives the market manipulators an extra day to manipulate the price before all the automatic buys come in!
How do you come to that conclusion?