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Hi, I am a newbie just recently started experimenting with stocks trading via TD Waterhouse. Just wondering for companies that pay dividends (e.g. SunLife etc.), under what conditions will I receive any form of dividends, and in what ways. Thanks.
 

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Hi, I am a newbie just recently started experimenting with stocks trading via TD Waterhouse. Just wondering for companies that pay dividends (e.g. SunLife etc.), under what conditions will I receive any form of dividends, and in what ways. Thanks.
The dividend will show up as cash in your account the day after the official payment date, assuming you held the stock on the record date.
Some brokerages, including TDW, offer a dividend re-investment plan (DRIP) for certain stocks.
If you sign up for such a plan, the brokerage will automatically buy the maximum possible whole number of shares it can with the amount of dividend.
I suggest buy the dividend stock of your selection and wait a few quarters to experience how the dividend payments work before you decide to sign up for DRIP plans.
 

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I recently added BMO's REIT Index ETF to my wife's RRSP account at BMO investoreline. Because it makes up a really low percentage of the account, if I do not choose to follow through with the DRIP, the dividends will just sit there doing nothing. BMO's minimums are so high for anything that involes short term interest. In this case does it make sense to implement a DRIP right away?
 

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I recently added BMO's REIT Index ETF to my wife's RRSP account at BMO investoreline. Because it makes up a really low percentage of the account, if I do not choose to follow through with the DRIP, the dividends will just sit there doing nothing. BMO's minimums are so high for anything that involes short term interest. In this case does it make sense to implement a DRIP right away?
Unless you are planning on doing something with the cash, OR do not have enough shares so that the dividend would be able to buy another share anyways I don't see a reason why you wouldn't setup the DRIP. A DRIP shouldn't cost you anything and depending on the DRIP can come with a nice discount on the share price.
 

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Link not available to public; locked by pass word. Sorry.

Set up a pseudo portfolio set up to reflect activity from January 4,2000 to yesterday (August 12, 2010); there have been 2 recession downturns, with the major being 2007/2008. It appears to show that buy and hold can work, rather than timing the market; at least for dividend stocks; but not suitable to buy and hold for a RIF; e.g.: Value late 2007 $40k , Feb. /09 $20k. Setup with 10,000 dollars in 2000; current balance 28,677 dollars, an 184.1% increase via price and dividends..
 

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Unless you are planning on doing something with the cash, OR do not have enough shares so that the dividend would be able to buy another share anyways I don't see a reason why you wouldn't setup the DRIP. A DRIP shouldn't cost you anything and depending on the DRIP can come with a nice discount on the share price.
UNless Investorline is different than all the other brokers, you will not get a DRIP discount on a synthetic drip.

Personally I prefer straight up cash. Just because I own a company doesnt mean it is always a good investment i.e. share price is too high.

Cash allows me to wait until something I want is being sold for a reasonable price.
 

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Ditto to bean438. I take the cash and reinvest it usually quarterly where I want to put it.

Many of my ETF investments do not offer DRIP's and I believe that some discount brokers do not as well if I am not mistaken.
 

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Bean - Investorline must be different. Even the banks pass on the drip discounts, you just have to ask them to, and it is done no problem.
 

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Ditto to bean438. I take the cash and reinvest it usually quarterly where I want to put it.

Many of my ETF investments do not offer DRIP's and I believe that some discount brokers do not as well if I am not mistaken.
The BMO REIT ETF is not yet listed on BMO's DRIP plan documents. However, because it is only a few months old, its first distribution is not until September. I will probably know better by then what options are available to me.
 

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REITs will pay distributions , not exactly the same as dividends , so will REIT funds.

In the case of individual REITs , some will give you an extra 1 or 2% if you DRIP rather than take the cash , that makes it even more worthwhile to DRIP.
 

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For those who may be interested, here is an article from the Globe and Mail's Rob Carrick concerning Canadian dividend ETF's:

http://www.theglobeandmail.com/globe-investor/investment-ideas/portfolio-strategy/how-to-reduce-the-risk-of-making-bad-stock-choices/article1680597/

And, for comparison purposes, how some of the big bank run funds, including dividend funds, have performed:

http://www.theglobeandmail.com/globe-investor/investment-ideas/number-cruncher/ranking-the-big-six-bank-stock-fund-offerings/article1674059/

Any thoughts?
 

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Hi, I am a newbie just recently started experimenting with stocks trading via TD Waterhouse. Just wondering for companies that pay dividends (e.g. SunLife etc.), under what conditions will I receive any form of dividends, and in what ways. Thanks.

There are 3 dates that you have be know:

Dividend Date: If you hold the stock on this date and prior then you are entitled.
X-Dividend Date: If you buy the stock PRIOR to this date you are entitled
Pay date: If you are entitled then this is the date you get paid.

For a stock that settles in 3 business dates (i.e. 99% of stocks) X-Dividend Date is usually 2 business date before the dividend date.


Also, for a good portion of blue cheaps, you may get your dividend not only in form of cash but in form of stocks. It is called dividend reinvestment plan.

I hope this helps.
 

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dividend payments

I bought BCE on Sept 8. The x-dividend date was Sept 13. Settlement date with Direct Investing was Sept 13. I believe the record date is Sept 15 and the payment date is Oct 15.

Am I entitled to this dividend?

Thanks
 

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Yes. You will receive the dividend in your account on Oct 18th (due to the weekend).

Since you bought the dividend on or before the ex-dividend date, you are entitled to receive the dividend.

On the ex dividend date you can typically expect high dividend paying stocks like BCE to drop in price by the amount of the upcoming dividend. Many people like to capture the dividend before they choose to sell a security.
 

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quick one folks:

suppose a stock/etf pay his dividends the 15th of each month.

do an investor need to hold the stock/etf for the entire period ? what if the stock is purchased the 14 ? a day before the dividend is distributed ? will the distribution be 'adjusted' for the holding period ???
 
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