Aviva - shares instead of dividend?

GAILEY

Hello Moneysavers,

I, among with thousands of others, received recently a letter from Equitini asking whether I wanted to be assigned extra shares instead of dividend from Aviva. It seemed like a good idea and a way in which to increase my investment without going throughthe hassle of a formal purchase etc (the shares I have were from a Norwich Union windfall many many years ago).

Is there anything I need to know, or any thoughts you might have??

Thanks, as always, in advance.

Gailey

dc110

How much are equniti charging you to automatically reinvestment - you will probably find this is cheaper equivalent that it would be to buy the corresponding number of shares

sabretoothtigger

Generally cash is better taken, look up a sharebuilder account if you want to put it back in

GAILEY

I don't know - the information sent to me sugests the benefits are of increasing shareholding at the middle market price for the shares without any dealing costs or stamp duty (which woldn't apply to me as I don't have enough shares?). I simply have a form to fill in and will be allocated the vaule of shares equivalent to my dividend when the time comes.
It seems quite attractive to me - as I would never venture into the stock market or think about anythig as risky or compicated on my own - yet these shares have just at there and I'm thinking that to easily acquire some more whilst the market is low might be a good thing to do?

dc110

Generally cash is better taken

Why?

I don't know - the information sent to me sugests the benefits are of increasing shareholding at the middle market price for the shares without any dealing costs or stamp duty (which woldn't apply to me as I don't have enough shares?). I simply have a form to fill in and will be allocated the vaule of shares equivalent to my dividend when the time comes.

if you dont need the cash then acquiring new shares at no dealing costs (the only 'cost' being the opportunity cost of using the cash for something else) seems an attractive option (IMO)

mrposhman

GAILEY wrote: »

I don't know - the information sent to me sugests the benefits are of increasing shareholding at the middle market price for the shares without any dealing costs or stamp duty (which woldn't apply to me as I don't have enough shares?). I simply have a form to fill in and will be allocated the vaule of shares equivalent to my dividend when the time comes.
It seems quite attractive to me - as I would never venture into the stock market or think about anythig as risky or compicated on my own - yet these shares have just at there and I'm thinking that to easily acquire some more whilst the market is low might be a good thing to do?

Doesn't matter how many shares you have I'm afraid, its always charged on normal traders at 0.5%.

I'm taking my dividends as shares, its free to trade them, they are priced at the middling price for 5 days towards the end of March.

sabretoothtigger

I hear everyone saying the market is low yet its risen 20% recently. Just because its cheaper then it was doesnt mean its good value any more then a second hand car gets much cheaper