SCHWAB ANNOUNCES NEW DIVIDEND REINVESTMENT SERVICE
SCHWAB ANNOUNCES NEW DIVIDEND REINVESTMENT SERVICE SAN FRANCISCO, July 7 /PRNewswire/ -- Charles Schwab & Co. Inc.
(NYSE: SCH) today announced the introduction of the first dividend reinvestment service available for all domestic exchange-listed and NASDAQ stocks. Schwab becomes the only brokerage firm to provide automatic reinvestment of dividends paid by every public company in the United States.
Schwab's Dividend Reinvestment Service enables investors to automatically reinvest dividends -- regardless of the size of the dividend -- paid by over 3,500 U.S. companies. Clients can select all or specific stocks held in any Schwab account. Enrollment is simplified by one phone call to any Schwab office or through a nationwide toll-free number, 800-442-5111. Dividend payments are reinvested into full or fractional shares of the same company's common stock the next business day after receipt of the dividend payment. A maximum transaction fee of $3.50 is charged to reinvest dividend amounts under $250.00. A transaction fee of 1.5 percent is charged for amounts over $250.00. There are no annual fees for the Dividend Reinvestment Service. Also, Schwab does not charge account fees (except IRA accounts under $10,000 in assets, and Keogh accounts), termination fees or postage and handling fees. "Dividend reinvestment is a key investing principle for any long- term investor, where periodic investment is a tried and true strategy for accumulating wealth," stated Charles R. Schwab, chairman and chief executive officer of the Charles Schwab Corp. A recent study by Standard & Poor's compared the S&P 500 Index 15-year return of 288 percent to a return of 634 percent for the same time period when dividends are reinvested. Similarly, a $1,000 investment in the S&P 500 in 1981 was worth $3,404 at year-end 1991, compared to $5,180 when dividends are reinvested. (Of course, S&P does not factor in transaction fees and dividend reinvestment cannot assure profits or protect investors from declining markets). Mutual Fund investors have had the benefit of automatic reinvestment of dividends for years. More than 80 percent of Schwab clients who trade mutual funds through Schwab's Mutual Fund Marketplace(R) elect automatic reinvestment of dividends. Charles Schwab & Co. Inc is one of the nation's largest brokerage firms serving 1.8 million active accounts with over $53 billion in client assets through a nationwide network of 171 offices in 45 states. -0- 7/6/92 /CONTACT: Tom Taggart of Charles Schwab, 415-627-8947/ (SCH) CO: Charles Schwab & Co. Inc. ST: California IN: FIN SU: DIV
MM-JL -- SF007 -- 6652 07/06/92 13:12 EDT
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|Date:||Jul 6, 1992|
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