Questions regarding DRIPs (Dividend Reinvestment Plans)

Amygdala

Hey,

If I wanted to undergo a DRIP either directly with the company or via a brokerage... is it possible to add regular monthly sums of cash to the DRIP to buy more shares? Is this difficult or easy to do? Equally, if in the distant future I decide I want to opt out of the DRIP am I correct in assuming that I still keep the shares I bought, but instead of getting my dividends reinvested I get cash dividends instead?

What are some of the hidden things to look out for when looking for a suitable DRIP? I.e. commission percentages? Fee for joining/leaving?

Many thanks ,

Vortigern

If you use DRIP via the company whose shares you hold, or its registrar, you would probably not be able to add a top-up to the dividend re-investment.

You can set up regular monthly investments via a broker. You need to check their minimum monthly subscription required and the dealing fee.

When you stop a DRIP, dividends will be paid out to your bank account, or by cheque.

You don't go "looking for a suitable DRIP." You choose a share. If that company operates a DRIP, you choose whether or not to use it, depending on the fees involved and the expected dividend amount.