Canadian Dividend Reinvestment Plans (DRIPs): Another New Year, Another New Update!!
Another New Year, Another New Update!!
I have made some massive changes to the site after being inactive for a while. Please see the lists below for full details.
As well, thank you everyone for patience. I hope that the time between updates will not be so long in future.
8. Ipsco Incorporated - firm taken private by SSAB Canada Inc.
# posted by Ken Cenerelli : 10:48:00 p.m.
went starting what is the best online discount brokerage.
# posted by Anonymous : Wednesday, March 05, 2008 10:06:00 p.m.
I use TD Waterhouse. They are convenient but I don't know if they are the best. BMO InvestorLine usually ranks among the best. However, neither of these are the cheapest.
I would recommend asking this question on the "Beginner's Corner" board at http://www.dripinvesting.org/Boards/Boards.asp It's a site exclusively for DRIPpers and a lot of people there are using discount brokerages. I am sure they will have more than enough information for you. Since I frequent the boards often I will see you there!
# posted by Ken : Thursday, March 06, 2008 10:22:00 a.m.
I just looked up Transalta Corp and their ticker symbol is TAC not TA.
This is a great site though, thanks for doing all this work!
# posted by sondra3 : Wednesday, April 23, 2008 10:12:00 p.m.
Vermillion Energy trust has discontinued both the Share Purchase Plan and the Dividend reinvestment plan. SPP in early 2008 and DRIP a few months ago.
# posted by Anonymous : Tuesday, September 16, 2008 12:56:00 p.m.
I've started initiating my 6yr old boy to the finance world. He has his own little bank at home in which he keeps currency from dozens of countries, he has his own savings account in which he follows and deposits funds.
I want to investigate the possibility of investing directly in blue chip companies. What do you suggest for a 6 yr old? I want to incorporate a 'fun' factor, something to get him really excited about it .... more so than he already is.
# posted by nutra : Friday, November 21, 2008 10:53:00 a.m.
Canada does not have a lot of kid-friendly DRIPs unfortunately. Whereas the U.S. has company's like Disney and McDonald's, our DRIPs are mostly in the financial and energy sectors. If you wish to stay in Canada, you might want to incorporate some banks (BMO, CM or BNS - can't go wrong with any of them), a gas company (SU or IMO - he's gonna grow up someday and wanna drive) and perhaps Telus (he's gonna wanna cell phone soon enough).
In a couple of books by Derek Foster he talks about setting up DRIPs for his kids. You might want to have a look at what he's chosen.
This is just my two cents. What does eveyone else think?
# posted by Ken : Friday, November 21, 2008 11:02:00 a.m.
Actually, he gets really excited about banks. His uncle is a high level retired banker. He often has 'meetings' with him!
I am a customer of BMO and Questrade ..... who would you suggest for a DRIP account?
Thanks again ..... at 6 yrs of age, can you imagine what a regular investment in blue chips will look like when he gets older!
# posted by nutra : Friday, November 21, 2008 11:08:00 a.m.
Not sure what you mean by this: "I am a customer of BMO and Questrade ..... who would you suggest for a DRIP account?"
If you mean should you use BMO's DRIP versus a synthetic DRIP within a brokerage, the company's DRIP is always the better choice. Here's why. The synthetic DRIP will only reinvest whole shares and leave any fractional amounts as dollars within your account. So, if you get $50 in dividends and BMO is trading at $45, then you will get one share reinvested and have $5 left in your account.
Whereas with the BMO program you get the whole dividend reinvested. You would then get 1.111111 shares posted to your account. Plus, you don't have to pay the initial trading fee to purchase the BMO stock in the first place.
# posted by Ken : Friday, November 21, 2008 11:20:00 a.m.
What I meant is I have brokerage accounts with Questrade and BMO Investorline.
You answered my question .... better to deal directly with the companies we will choose to invest in. Correct?
# posted by nutra : Friday, November 21, 2008 12:23:00 p.m.
I think it's better to deal directly with the companies. However, there are benefits and drawbacks to both. The flexibility you gain by using a broker over when to invest and at what price is sacrificed when you use a company's DRIP plan as you are on their schedule. However, most plans are fee free, they re-invest fractions and you can sometimes get discounts on your reinvestments.
# posted by Ken : Friday, November 21, 2008 1:29:00 p.m.