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Author: IKan Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 511  
Subject: Re: Canadian Discount Brokers + Other Questions Date: 10/13/2010 7:44 PM
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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.



Most brokerages will Synthetic drip most companies (stocks) that pay a dividend, per my experience and others I know. Their is no cost associated :):):) you do have to phone up the brokerage and ask them to do it. It is that simple.

In a true DRIP (Dividend Reinvestment Plan) all of the dividend $ value buy shares (whole and/or in part). Example: you received $49.57 as dividend payment from say Enbridge (ENB - TSX). On the date they use lets say ENB's stock trades for $40 per share. The $49.57 would be used to buy you 1.23925 shares ($49.57 / $40) at no cost to you.


You will get lots of answers on DRIPs at the site dfish listed.

Best of luck.

Ask away as you make your way through the maze. It does eventually become clearer. We all had to start somewhere.

Have a great day!
IKan
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