As a member of the BMO (Bank of Montreal) share purchase plan (and drip), I recently received a notice that there is now a 2% discount on any shares bought through the dividend reinvest plan (DRIP). Please note that this is the share purchase plan run through Compushare – it doesn’t apply to shares bought through a brokerage.
My Dad bought me a BMO share a long time ago and I have to admit I’ve never added to the position. I might do it eventually but in my case, paying off the mortgage and adding to the RRSP make a lot more sense then having a relatively tax-inefficient open account.
My kids both own a BMO share as well (thanks to Mr. Cheap) in which we will be doing the occasional purchase – I’m thinking maybe $100/year or something like that. This 2% discount will only apply to the reinvested dividends but it is still nice.
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