Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
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 autodraft
4% with a $2 max for each dividend reinvestment
An additional $0.03 per share for each purchase

$10 Service Fee for Sales
$0.10 Sales commision per share

At 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
Print the post Back To Top
No. of Recommendations: 0
"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.

Print the post Back To Top
No. of Recommendations: 0
I opened the envelope and noticed a new plan booklet. Hardly ever a good sign.

Odee
Print the post Back To Top
No. of Recommendations: 0
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.
Print the post Back To Top