You can now reinvest dividends through brokers that manage synthetic DRIPs. This type of DRIP is not a “real” DRIP, it’s more of a service that the brokers provide to their customers and is often referred to as a “synthetic DRIP.”
The big advantage of using a synthetic DRIP is that brokers will allow you to drip (make small, regular investments in a stock) many companies that do not even have a formal DRIP program. If your broker offers this feature, you can drip virtually every blue-chip company on the U.S. stock exchanges.
Although synthetic DRIPs give you the ability to expand the number of drippable companies, they do have a few drawbacks. The biggest drawback is that synthetic DRIPs do not allow for fractional share ownership—only ...