Greetings All,I just received my updated prospectus for the JCI DRIP and it looks like the investor friendly plan is ending as we know it. I would rate it to be on the moderate cost scale now instead of free like it used to be.As of 1 Dec 04, the costs will be:$2 for OCP by check$1 for OCP by autodraft4% with a $2 max for each dividend reinvestmentAn additional $0.03 per share for each purchase$10 Service Fee for Sales$0.10 Sales commision per shareAt that cost for dividend reinvestment, I will have to reconsider whether I will reinvest my dividends especially since the cost level will be at 4% of my dividend due to the number of shares I currently own. It is still a great company and I don't see myself emptying my position, but I am definitely not a fan of the high costs for dividend reinvestment especially since I assume the costs of issuing a quarterly check would exceed the 4% that they will be charging.Jon
"It is still a great company and I don't see myself emptying my position, but I am definitely not a fan of the high costs for dividend reinvestment especially since I assume the costs of issuing a quarterly check would exceed the 4% that they will be charging." I am doing the same. Their nickle and diming here has me quite upset. I will be taking my dividends in the form of a check, I know just how much this will cost them if folks do this and it is far in excess of what their DRIP could possible have cost. I hope enough JCI drippers do this to make the company feel the pain of becoming investor beligerent toward drippers.
I opened the envelope and noticed a new plan booklet. Hardly ever a good sign.Odee
The whole point of having a DRIP is keep the cost low for investors who are willing to reinvest in the company. Having a number of fees really flies in the face of that. And having so many fees, some on the OCP and some on the reinvestment really hurts. I didn't own that much JCI, only about $1K, but I'm going to sell it and just get out of the DRIP. There are too many investor friendly plans that I'd rather deal with.
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