Zecco Dividend Reinvestment: More of a Hassle than Convenience
When I logged into my account yesterday, I noticed that there’s a $20 dividend from my investment in Blackstone Group (BX) (not that I appreciate the money given how much the stock has dropped since it’s IPO). Since I don’t need to take any cash distribution now, I’d love to see all the dividends, as well as capital gains from mutual funds, reinvested. After clicked all the menu items in my account, I didn’t find anything tell me how to set up dividend reinvestment. That’s kind of weird because as a service, I imagine it should be easily accessible.
So I decided to give Zecco a call and was told that there’s no way I can set up dividend reinvestment myself. To use the service, I have to send them a signed little with instruction on which security, or the whole account, I want to set up the dividend reinvestment. When I asked if they have a form I can fill out, they said no, there’s no such a form and I just have to write a letter myself and either mail or fax it to them.
Later, I found there’s a discussion in Zecco forum on what are needed, including one item I wasn’t told over the phone: a copy of a government issued ID. What do they need that for? They didn’t ask that when I opened the account, but require it to set up a dividend reinvestment plan? And the discrepancy between information given by Zecco sure will mean some back-and-forth before the job is done. Why can’t they provide a template to make everybody’s life a little easier?
BTW, I was told yesterday that only whole shares can be purchased with dividends.
Sorry, no fractional shares for you! And you probably can forget about the whole dividend reinvestment thing if the distribution is too small to even buy a single share.
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