Comments on: BMO Dividend Reinvest Program Now Has 2% Discount

By: WALTYER SHEPPARD

WALTYER SHEPPARD — Sat, 27 Feb 2010 18:34:31 +0000

What is the diference between real/discounted drips and synthetic drips?

By: DRIP discounts from BMO and RY

DRIP discounts from BMO and RY — Thu, 05 Mar 2009 15:37:28 +0000

[...] Bank of Montreal announced that it is offering a 2% discount for shareholders opting to reinvest their dividends. The details of the program are available in [...]

By: James

James — Sat, 31 Jan 2009 15:22:12 +0000

Scotia: BNS is also doing this. Although I do like the discount, its actually a bad thing in the long run. Why? Because it means that BMO and BNS are issuing shares from treasury in order to give dividends and this only waters the shares down. So you get more shares because of the discount but the shares are actually worth less because there are more shares being issued and supply/demand kicks in. Under the plan in usual circumstances the bank would purchase the shares for the DRIP on the open market. It is never good when the bank(s) are issuing shares because in the long run when there are more shares each share is less valuable.

By: This and That: Budget 2009 Edition

This and That: Budget 2009 Edition — Fri, 30 Jan 2009 14:04:38 +0000

[...] Pillars reports on the BMO dividend reinvestment program. With the scramble for capital, other banks may follow [...]

By: Brian

Brian — Sat, 24 Jan 2009 18:34:52 +0000

Another problem with synthetic drips is that you can cannot reinvest those dividends into fractional shares.

By: Dividend Growth Investor

Dividend Growth Investor — Wed, 21 Jan 2009 17:30:24 +0000

It’s always interesting to find an extra “edge” in the compounding of your investments. A dividend growth stocks, that is increasing its dividends consistently is letting you further reinvest the growing payments into discounted stocks. Talking about triple compounding effects

By: Sampson

Sampson — Mon, 19 Jan 2009 22:56:59 +0000

I’ve got an account with RBC direct investing and its a little weird.

I have had them pass the discount to me, but only for CERTAIN holdings, of which they won’t tell you which ones. They have a master of list of equities eligible for DRIPS, and separate lists for ones eligible for real/discounted drips vs. synthetic ones.

Pain in the butt cuz you have to ask re: each holding, or potential holding.

By: Mr. Cheap

Mr. Cheap — Mon, 19 Jan 2009 03:24:34 +0000

Ray: Yeah, unfortunately it’s easy to set it up a DRiP at TDW, but you don’t get the 2% discount. Apparently *some* brokers pass it along to their clients, some don’t. Call TDW, but if they don’t pass it along to you, there isn’t a simple way to get it.

By: Ray

Ray — Mon, 19 Jan 2009 01:35:57 +0000

Thanks – but I’m having a hard time following. I already drip all my investments (XIU, XEG, XGD, etc) so I’m familiar with the process through TDW. I just want my drip to qualify for the extra 2% off the drip purchases in the easiest way possible. I don’t particularly want to hold anything in “certificate” format, I don’t really want to write cheques, there has to be a better way for a quarterly dividend. Otherwise it sounds like 4 times a year it becomes a huge mess when right now it’s super convenient (just tell the brokerage “enable drip!”). I look forward to any future topics on this and I’ll follow your link – thanks!

By: Weekend Financial Blog Posts

Weekend Financial Blog Posts — Mon, 19 Jan 2009 01:03:27 +0000

[...] BMO Dividend Reinvest Program Now Has 2% Discount [...]