[refutor]

In the States, you can buy stocks directly from the company on a biweekly basis for a real DRIP, avoiding the hassle and expense of going through a broker (see link)

http://media.corporate-ir.net/media_files/irol/78/78265/PepsiCo_BuyDirect_Booklet.pdf through www.pepsico.com

is there anything like that for Canada? is it possible in Canada or is it just an American phenomenon? I tried contacting Bank of New York (in .pdf) and did not get a response. Broker fees are the devil

 

[CanadianCapitalist]

is there anything like that for Canada? is it possible in Canada or is it just an American phenomenon?

I'm not a DRiPper but here are some resources for Canada:

Canadian DRIP Primer

Check out the links section for more resources.

 

[refutor]

Thanks!

Thanks! That was exactly what I'm looking for

 

[pantograph]

http://dripinvesting.org/Default.htm

 

[Jon202]

Be sure to have a look at my Cdn DRIP FAQ, answers most common questions:
http://cdndrips.googlepages.com/canadiandripfaq

 

[Cal]

Here's a list of DRIPable companies in Canada:

http://cdndrips.blogspot.com/

 

[Retired at 31]

I read the flow chart here http://cdndrips.googlepages.com/

I'm currently on synthetic drips with a discount broker, but getting the discount offered from some companies along with fractional shares makes sense.

So I call my broker, get my certificate, mail it away then I'm unclear as to what happens next. Do these shares associated with the certificate remain within my brokerage account? Does the real drip happen within the confines of the brokerage account? Same with the fractional shares? Or are those shares associated with the certificate transferred out of the brokerage account and all I now have is a certificate saying I own so many shares? And then after each drip I get a statement or account direct from the company or transfer agent?

The spp isn't that appealing to me - I'd prefer more control over timing of future purchases than dropping a chq. in the mail and getting market rate whenever the post office delivers it.

 

[Jon202]

First, if you have A LOT of shares, check if your broker passes along the discount offered by many of the DRIPs. Also, if you're paying commissions on the lower end of the scale, then the $50 cert. fee to take advantage of free purchases and fractional shares may not be enough.

Yes, you get a statement of your "book shares" purchased through the DRIP, down to the .001 of a share.

(From my FAQ page)
No, only those shares registered in YOUR NAME with the Transfer Agent will count towards the DRIP. Shares in a discount brokerage account are not actually in your name, rather they are held "in Trust" by the Broker for you. (You are the Beneficial Owner) So you would have to request a certificate and pay the fee to have those shares registered in your name and become the Registered Owner.

For other DRIPpers, the SPP is the appealing part, regular purchase schedule at no cost. I send off multiple cheques regularly for BNS and they are processed on the 1st of each month for as many months in a row as I send in.

There are so many variables for each investor, such as your broker, your holdings, your investment objectives, etc etc.. that sure for some DRIPping might not make sense. But for those starting out with not a lot of money to work worth and just trying to build up a portfolio with no fees, it does make sense.

Read through all the pages on my site, which should answer most of your questions about traditional DRIPs/SPPs. If you have any questions, post away!

Jon

 

[Cal]

RE: Jon202

Just curious as to what brokers you are aware of that offer the the discount offered by many of the DRIPs, and for what quantity of volume? I use Td Waterhouse, however, I haven't asked for the discount. It is worth a try to avoid having to get the share certificate. However you still wouldn't get fractional shares, probably only whole shares.

 

[Jon202]

Apparently Disnat and RBC do, and iTrade does not. This is simply word of mouth.

Best to ask your broker as it's probably broker by broker, company by company.

 

[Cal]

Apparently TD Waterhouse will too. I called to check.

They referred to it as a Treasury DRIP, as the shares are issued by the company. (vs. what they refer to as a market DRIP, using $ to repurchase more shares)

They told me once I made my initial purchase to call back to set it up.

 

[CanadianCapitalist]

Many brokerages get the discount for their synthetic DRIP participants. I checked with RBC Direct that the BMO and RY DRIP discount can be obtained with them. I wrote about this and reader feedback suggests that other discount brokers do the same thing:

http://www.canadiancapitalist.com/drip-discounts-from-bmo-and-ry/