Comments on: Why You Should First Invest in Dividend Reinvestment Plans (DRIPs)

By: MoneyEnergy

MoneyEnergy — Thu, 31 Dec 2009 17:05:52 +0000

@rajarajan – I guess it depends on your employer – it sounds like you’re not using Computershare, so I’m not sure – just call them if you can. As long as all the dividends are being reinvested, it might not make much of a difference.

@bony – are you in Canada? Most certificates are much cheaper, around $50 at all the major banks. Check out TradeFreedom, too – cheaper trades, but I’m not sure what their certificate rates are. iTrade at Scotiabank would be good to check out for their new rates, too. Could be convenient, since they are linked with Scotia online.

By: bony

bony — Wed, 30 Dec 2009 18:17:23 +0000

Hey Hi,
Always looking for how to save money. Could you please tell me which broker are you using for you DRIP?. Asking for the certificate with Questrade is not possible ($300 per stock) I think is too huge. Any advice will be welcome.
Happy new year, health and money

By: rajarajan

rajarajan — Thu, 12 Nov 2009 02:33:25 +0000

ESPP = Empolyee Stock Purchase Plan. Our company is US based and stock purchased at NASDEQ. I am in Canada, but as per ur answer – i don’t need certificates.

Just checked my statement again and my common stocks were staying at one line and DRIIP stocks are accumalating on another line, is there any way to combine them?

Thank You!

By: MoneyEnergy

MoneyEnergy — Thu, 12 Nov 2009 00:43:13 +0000

Hi Rajarajan, I left you a comment on my post at MillionDollarJourney, too. I’m a Canadian investor and I use Computershare Canada, so I don’t know about the “ESPP” that you mention – is that “electronic stock purchase plan”?

Sounds like one line is for the purchasing of shares, and the other line for the reinvestment of the dividends. This makes sense.

Maybe you never needed a certificate because your stock was available for direct purchase online (electronically). We don’t have this option in Canada. Canadians need to buy the certificate first, always (or have one transferred into their name). That’s one thing that’s easier for US investors.

So yes, it is basically the same DRIP account I was talking about – just that you’re at Computershare in the US and you’re investing in a different company. You don’t need a certificate if you’re already enrolled in the DRIP. (Unless someday you want to transfer one share over to someone else).

By: rajarajan

rajarajan — Wed, 11 Nov 2009 21:18:12 +0000

I am going through all of your blog and thank you for sharing such a useful information to all of us.

I have Compushare account in US. I am enrolled on ESPP and there is 2 line i can see on my compushare account one for ESPP and other for DRIP. Every Quarter i am getting .29 cent divident for common stock.

my question are:
1. Is this the same DRIP account you were talking about and i believe i can purchase other stock which has DRIP – I am correct?

2. I have around 100 shares, but never ask for certificate, do i have to ? why certificate is that important ?

Thank you for help!

By: Diversify DRIP Cashflow By Withdrawing Shares | MoneyEnergy

Diversify DRIP Cashflow By Withdrawing Shares | MoneyEnergy — Mon, 17 Aug 2009 10:01:13 +0000

[...] cashflow, diversification, dividends, investing Regular readers know I’m a big fan of DRIPs (dividend reinvestment plans) for many reasons (see any of the posts in my sidebar, but especially [...]

By: MoneyEnergy

MoneyEnergy — Wed, 03 Jun 2009 06:09:34 +0000

GMC, I believe that if you’re holding it in trust for the child, it’s still considered part of your own income until s/he’s of age, but I’d have to double check on this. Email me and I can get back to you. But you have a great idea there – in fact, it’s a very popular option with these DRIPs to buy them as gifts for kids and just let the dividends on 10 shares reinvest until they’re 18. You’d be surprised, it could practically pay for a good chunk of college!

By: GMC

GMC — Wed, 03 Jun 2009 03:37:15 +0000

Interesting reading. Do have a question. This sounds like a great plan to start a DRIP plan for my grandchild on his birthday every year, starting this year at his age of 3. How will this work, financially? Who pays taxes or when. Hopefully when grandchild is 18, this would be a great present to hand over. Who pays or claims the taxes til then?

By: MoneyEnergy

MoneyEnergy — Mon, 25 May 2009 17:01:12 +0000

Hi Mr. Cheap, thanks very much! I’d love to be involved – or just be included in a post or two!:) Great to find a fellow DRIPper… let’s talk.

By: Mr. Cheap

Mr. Cheap — Mon, 25 May 2009 06:57:49 +0000

Hey Clare: I’ve been planning for a while to do a series of posts about DRiPping, and after discovering your posts, the bar is now a lot higher if I do it myself.

VERY nice series of incredibly useful information!