Canadian Money Forum banner

1 - 3 of 3 Posts

·
Registered
Joined
·
43 Posts
Discussion Starter #1
Interesting lately how lots of companies are starting to offer DRIPs directly out of treasury at discounts between 1 to 5% of the avg. mkt price.

I'm starting to like all these offerings as I look at them along the lines of a dividend increase. By DRIPing you get 1-5% more than you would by not.

They are slightly more diltuive but from what I can see most of the companies that DRIP from treasury also do pretty decent NCIBs which should probably, in most cases, cancel out the new shares they issue via DRIP.

I'm curious to know if these discounts are getting more and more people to DRIP who would otherwise just have taken the cash or would you DRIP regardless?
 

·
Premium Member
Joined
·
2,686 Posts
I don't do DRIP but then again I only own a couple of stocks that offer then: Royal Bank and BMO immediately come to mind. I simply let the dividends accumulate and I purchase the stocks that are less than my target.
 

·
Registered
Joined
·
9 Posts
I don't drip either since having 40 different stocks in 40 different drips would be a nightmare to manage.

I did have a recent post on Using DRIPs for faster compounding of dividends

Included is a list of many Canadian and US companies offering drip discounts. It does seem however that mostly the large Canadian Companies such as BMO, BNS, TD and others are doing drip discounts. Many US companies do not this currently..
 
1 - 3 of 3 Posts
Top