To get around this, some companies offer
a discount on the DRIP.
One of the largest oil and gas producers listed on the Toronto Stock Exchange, Nexen offers a 5 - per - cent
discount on its DRIP.
Not exact matches
Both investors and companies tend to adore
DRIPs — investors, because they're an easy way of acquiring stock without having to pay any broker's fees (and
DRIPs also spare you the temptation of blowing your dividends
on sneakers and tasting menus) Companies like offering
DRIPs because they can disperse dividends without having to actually use cash, and because of that, many companies will offer stock at a
discounted rate to those enrolled in
DRIPs.
By participating in
DRIPs, investors can purchase fractional shares, avoid costly transaction fees and even receive a
discount on their purchase (
discount only offered by some companies and typically ranges between 1 % and 10 %).
You will never again fall for their gimmicks and tired tactics only to find that the high priced health coaching school that tried to lure you with shiny objects and big
discounts drips ONE course module
on you every two to three weeks dragging out the time it takes to finish the program by 9 months to 2 years!
By participating in
DRIPs, investors can purchase fractional shares, avoid costly transaction fees and even receive a
discount on their purchase (
discount only offered by some companies and typically ranges between 1 % and 10 %).
Many investors sign up for synthetic Dividend Reinvestment Plans (
DRiPs) at
discount brokers to save
on trading commissions.
Most
discount brokers already offer
DRIPs on Canadian exchange - traded funds, albeit for full shares only.
In addition, many
DRIPs offer the opportunity to purchase additional shares in cash and offer a
discount of up to ten percent
on the share purchase with no additional fees attached.
I don't suspect this will go
on forever, but I'll gladly take the
discount while it's
on, another reason to run some synthetic
DRIPs for stocks when you can in your non-reg., RRSP and TFSA or any other account.
I bought many of my
DRIPs in late 2007 and early 2008 because I was getting a
discount on the broker fees due to a one time annual subscription to Direct Investing's «Money Paper.»
SMDI has been my only
discount brokerage service, so I can not compare it with the competition but I can say that as a frugal investor, I've avoided using the service due to the fees and focused
on my no - fee
DRIP holdings.
Not only does an investor avoid brokerage fees, but companies sometimes offer shares at a
discount for investors who are enrolled in
DRIPs because companies often want to hold
on to their cash.
RioCan is the largest REIT in the land and it offers a
discount of 3.1 per cent
on its
DRIP, but not its SPP..
As a newbie, I still spend a lot of time researching, and in a couple of blogs I have seen references to companies that will provide a small
discount on the current stock price when purchasing additional shares using their
DRIP program.
They work a little different than a regular
discount broker in that they are co-op buying, but off free fractional
DRIPs on any of the securities they sell.
When a
DRIP investor decides to acquire their initial share buy using «Broker Method» by buying shares
on the open market, the fees can be quite high as shown
on the
Discount Broker page.
Fees Are Generally Higher
on DRIPs: Depending
on your
discount brokerage, you'll usually pay a flat fee
on share transactions.
I've only found one company that offers a
discount on shares purchased with reinvested dividends through its
DRIP: Aqua America (WTR) offers a 5 %
discount when you buy shares with reinvested dividends.
Contractors or lawn services can get
discounts on rentals and supplies, they have trucks that can haul a (literal) ton of rocks, they have people who can help get it done faster, and they'll (presumably) do it right the first time (have you ever tried to install a
drip system?)