Since the opinions vary, and I was basing mine on past activities, I sent an e-mail to Fidelity for a clarification.

I believe Richardo has it right.

If I get an answer that makes sense, I'll post it. They tend to reply using a boiler plate method that sometimes beats around the bush and does not address the direct question.

Cash from EDIG to the broker, the broker buying on the open market, and charging a fee makes sense, as that's how Prudential handled my GE divs years ago, to include QCOM and MSFT best I recall.

Interesting discussion none the less.