Once you have the initial cost basis for the shares, you'll need to continue to add the
cost of additional shares purchased to that basis.
In the unlikely event of a delayed meeting of stockholders beyond the anticipated late October or November 2009, Mr. Tombar may acquire a sufficient number
of additional shares of Aspen's stock or contact other shareholders with the intent of calling a special meeting to consider shareholder proposals and the election of new directors to the board of the corporation.
With the $ 10.00 dividend and at Q1 2015 market price of $ 50, the investor owns a fractional 1 / 5th
of an additional share with the DRIP.
With the $ 10.00 dividend and at Q1 2015 market price of $ 50, the investor owns a fractional 1 /
5th of an additional share with the DRIP.
When a person participates in a dividend reinvestment program rather than getting a check for their earned dividends, the company will, in turn, reinvest the person dividends for them in their name in the
form of additional shares.
State share sales expected this year include those of power generation company EVN Genco 3, estimated to be worth about $ 2.2 billion in local media reports, and the divestment
of additional shares in $ 9.6 billion Airports Corporation of Vietnam, currently 95 percent owned by the government.
The compounding
effect of these additional shares along with potentially increased income from our options selling in combination with the significant defined risk protection are what differentiate our strategy from our competitors.
As Investor B adds shares his stock dividends become larger and larger
because of additional shares, but also because he is benefiting from the increase in the dividends per share.
The DRIP allows shareholders to compound their investment through the convenient automatic purchase
of additional shares without incurring commissions.
With a DRIP, you can reinvest the dividends that you earn back into the company that you own stock in, through the purchase
of additional shares of stock in the company.
3) Since they're not on automatic investing, I can re-balance my portfolio monthly through my
purchasing of additional shares of one ETF and not as many in another
Offered directly by corporations, these plans allow investors to apply their stock dividends immediately toward the purchase
of additional shares.
A dividend reinvestment plan (DRIP), which is also known as a direct purchase plan (DPP), allows you to reinvest your stock's dividend income automatically into the purchase
of additional shares of that security without paying any trading commissions.
Many people believe that reinvested mutual fund dividends are simply taxable income and don't see them as a purchase
of additional shares.
Of course, if Mr. Market offers me a further 30 or 40 % discount over current prices I may have a hard time resisting the purchase
of additional shares.