One of our holdings, OFS Credit Company, Inc. Common Stock (OCCI), uses the Dividend ReInvestment Plan (DRIP). This means that you receive shares in the company instead of the dividend amount.
Since we live in Sweden, each bank decides whether we take part in DRIP or whether we are paid in cash.
At Avanza, we are provided with shares and the part of the dividend amount that is not enough for a whole share is paid out in cash. Nordea sells our shares and pays the amount in cash.
If I had to choose, Nordea would do the same as Avanza. We avoid both brokerage and exchange fees, instead the holding is only increased.
However, this will be another variable in my calculated forecast as we have a smaller holding with Avanza. If I reach my goal with +-5%, I will be incredibly satisfied.
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