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Many of the Banks etc do something called a synthetic drip which is what you refer to where as an example you have $52 in dividends on a drip and the cost of one share is $50. They place the share in you account and also the $2.00. There is no charge for either transaction.

I started something for my kids, a while back, with CSA - Canadian Share Owners Association where you set up an account, registered (tax deferal) or normal non registered - depending on your objectives. You first open an account and place an initial amount of money with them via cheque.

Then you can buy shares from a long list of companies Canadian and International, that all have drips. They do a true drip where the entire $52 would buy shares of the stock.

I don't believe there is a minimum for the amount to buy with each purchase. In other words if you had $2000 to invest, you could put it all into one stock or you split it over 10 stock, etc.

Now fees. If you do do a "buy now" type order - like a normal brokerage I think the comission is high at about $36. I don't do this.

They have regular scheduled purchase days for each stock, where they kind of bulk purchase. They would then include your buy here, and allocate your alloted stocks to your account.

If you purchase this way, as I do, the commission is $9 per trade.

What I did was send a cheque for $5000 to CSA. Then I selected my stock and did this group purchase thing on 5 stock. They were purchased all on different days but over say 30 days all had been aquired. Total commission $36.

Fractional Shares are dripped back into the account on each dividend payment.

Keep in mind any International stock are subject to withholding taxes on those fractional shares, so you don't get the entire dividend placed in your account.

Good luck

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