Dividend reinvestment plans at the top online brokerage companies: Fidelity, TD Ameritrade, Ally Invest, Merrill Edge, Etrade, Charles Schwab, Firstrade, Vanguard and others.

TD Ameritrade Dividend Reinvestment Program

4.5-star brokerage firm rating

Investors at TD Ameritrade can sign up for the broker’s Dividend Reinvestment Plan, also known as DRIP. There is no charge for this service, and it can be used for stocks, exchange-traded funds, and many American Depository Receipts (ADR’s).

To sign up for the broker’s DRIP service, click on ‘My Account’ at the top of the TD Ameritrade website. In the drop-down menu that appears, select ‘Dividend Reinvestment.’ Here, you will find helpful information on reinvesting cash dividends.

Fractional shares: Yes.

Review: TD Ameritrade Review

Promotion: $0 commission stocks/ETFs + get up to $600 cash.

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Charles Schwab Dividend Reinvestment Plan

Charles Schwab rating

Charles Schwab traders can have stock and mutual fund dividends reinvested into the securities themselves, instead of receiving cash payments. A helpful page on the broker’s DRIP service is available on the website. It can be located by typing in “dividend reinvestment” in the search field that appears in the upper-right of the site. The page can also be found by selecting “Products” in the top menu, and then choosing “Stocks”. A page entitled “Dividend Reinvestment” will then appear in the left-hand column.

This area describes the broker’s dividend reinvestment plan, or DRIP. The broker does offer the service for ETF’s too. And of course, distributions from mutual funds can be rolled back into the fund as shares, instead of deposited into the account’s core position as cash.

Fractional shares: Yes.

Review: Charles Schwab Review

E*Trade Dividend Reinvestment Plan

Etrade brokerage firm rating

E*Trade’s DRIP service has a few policies. First, a security must have a market price of $5 or higher to be enrolled. Of course, the stock or ETF must be in an E*Trade brokerage account, and it must also be currently paying a dividend.

To enroll an equity in the broker’s DRIP service, you must submit a form. This can be downloaded as a pdf document; alternatively, E*Trade offers it as an on-line form. To locate it, you can go to us.etrade.com/forms-applications without logging in. If you’re logged in, just point your browser to ‘Account’ and then select ‘Documents.’ Next, scroll down to ‘Deposits and Withdrawals’ and choose ‘More.’ Finally, there will be a DRIP enrollment form, which will also allow you to unenroll if you wish. The form is available in both hard-copy and electronic forms. It takes the broker up to five business days to complete an enrollment.

Fractional shares: Yes.

Review: E*Trade Review

Fidelity Investing DRIP

Fidelity Investments rating

When you own shares of mutual funds or stocks at Fidelity Investments, you might receive distributions from these investments in the form of dividends and/or capital gains. In most cases, you can choose how to receive these distributions. The most common methods include reinvesting the money to buy more shares of the mutual fund or stock, moving the money into your cash account, and/or sending the money to another Fidelity mutual fund. In brokerage accounts, the following mutual funds can only be coded to reinvest in a security: Fidelity Cash, Fidelity Government Cash Reserves, Fidelity U.S. Government Reserves, Fidelity Select Money Market, All eligible core account money markets.

Enrollment in to Fidelity Dividend Reinvestment Program can be done online or via phone.

Fractional shares: Yes.

Review: Fidelity Review

Firstrade Dividend Reinvestment Pla

Firstrade rating

All marginable U.S. equities priced above $4.00 per share and selected foreign securities are eligible. The reinvested shares will be purchased at the market price on the dividend payment date. Accounts can be set up for dividend reinvestment on the day the security is purchased, but in order to receive the reinvestment for an upcoming dividend, trades must settle by the record date.

Customers can set up the program via online account. To access the Dividend Reinvestment page they can click on "My Accounts -> DRIP".

Because of $0-commissions on almost all investment products, Firstrade is rated the best broker for dividend reinvestment plan among online investing companies.

Fractional shares: Yes.

Review: Firstrade Review

Promotion: $0 commissions + up to $200 in transfer fee rebates.

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Merrill Edge/Lynch DRIP

3.5-star brokerage firm rating

For stocks and ETFs, investors can reinvest dividends and capital gains or receive cash. For mutual funds, investors can reinvest dividends and capital gains or reinvest capital gains only. Or, investors can elect to receive cash payments.

To enroll, contact a Merrill Edge Investment Center representative.

Fractional shares: Yes.

Review: Merrill Edge Review

Ally Invest Dividend Reinvestment Plan

Ally Invest rating

All marginable U.S. equities and selected American Depository Receipts (ADR's) priced at $4 or more that trade either on an exchange or quotes on NASDAQ are eligible for DRIP. Dividends are reinvested on your behalf on the dividend payable date by our clearing firm. The reinvested position will reflect in whole and fractional shares.

Customers can enroll in Ally Invest dividend reinvestment plan via email or by phone.

Fractional shares: Yes.

Review: Ally Invest Review

Promotion: Up to $3,500 cash bonus + free trades.

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T. Rowe Price Dividend Reinvestment Plan

3-star brokerage firm rating

Most securities listed on the New York Stock Exchange or the American Stock Exchange or traded on the National Association of Securities Dealers Automated Quotation (NASDAQ) system are eligible for the Dividend Reinvestment Service. Non-listed foreign securities, nonpublicly traded limited partnerships, preferred issues, and short positions are not eligible.

Enrollment in Dividend Reinvestment Service becomes effective on the first business day after an investor elects to enroll and the broker receives account application.

Fractional shares: Yes.

Reviews: T.Rowe Price Review

USAA Investments DRIP

USAA Investments rating

Most securities listed on the New York Stock Exchange, the American Stock Exchange, or traded on the NASDAQ are eligible for EDRS. Foreign securities and short positions are not eligible. Most cash distributions on eligible securities selected for participation in EDRS may be reinvested, including ordinary dividends and capital gain distributions. Cash-in-lieu payments, and certain special dividend payments, however, cannot be automatically reinvested. You may not combine funds from eligible cash distributions with any funds you deposit into your Account to make automatic reinvestment purchases.

To enroll in USAA EDRS contact customer representatives.

Fractional shares: Yes.

Review: USAA Brokerage Review

Vanguard Dividend Reinvestment Program

Vanguard brokerage company rating

All eligible stocks, closed-end mutual funds, exchange-traded funds (ETFs), FundAccess® funds, or Vanguard mutual funds are eligible for Vanguard Dividend Reinvestment Program.

Enrollment in the Dividend Reinvestment Program can be done by phone or by accessing an account on vanguard.com.

Fractional shares: Yes.

Review: Vanguard Review