Dividend reinvestment schemes

[Placebo]

Not sure whether this was on or off topic, but I'll put it here anyway.

I'm in CEN's dividend reinvestment programme, where they give you shares in lieu of a dividend. A sure fire way to compound your holding. At the moment it's the only share in my portfolio that has such an instrument available, although I understand FBU also has a scheme.

Short of asking each company individually, does anyone know of a resource anywhere that lists which companies have dividend reinvestment schemes?

If not, maybe we could compile a list here.

[kiwikauri]

AMP has DRP

[maxine]

I believe TEL and SKC do too.

[kiwikauri]

Good topic as all the % gains people quote are usually calaculated as if the dividends have been reinvested...

Just had a quick check on my portfolio, an dteh only other ones that have DRP's are TWR - when they last paid a dividend, and GPG - although only pays a small dividend - but it does enhance the DRP as cash is KING to GPG..

In Australia, MIG offers DRP.
So that makes

AMP
TWR
GPG

[Placebo]

Thanks Maxine. I asked SKC, they said they had a programme that was discontinued in October 2002.

[zacman]

RPL just approved drip
z'man

[kiwikauri]

Maxine

SKC had A DRP - but suspended it as too many people elected to take scrip instead of cash, and SKC had the cash to pay dividends an didn't need to hold onto the cash.

Bummer

[zyreon]

NZX used to have a list on their website...

[zyreon]

ones that i know of having had a DRP:
TNZ,FNZ,MDZ,KIP,CNZ,RBD

[rmbbrave]

Air NZ too, I think.

[troyvdh]

PFI

[Gryffyn]

OZY (and probably all the other index shares) does as well. Good thread.

[Dazza]

i am wondering but does trust power have a DRP?

[Lawso]

CEN's scheme is only open to those with fewer than 5000 shares.

[Shamrock]

URB - (Urbus Properties) began one last year for those investors who hold 1,000 shares or more

[Steve]

quote:Originally posted by zyreon

ones that i know of having had a DRP:
TNZ,FNZ,MDZ,KIP,CNZ,RBD


In the RBD interim announcement on 7 Oct 04, they suspended the DRP.

[Placebo]

Thanks for all the responses folks :)

List so far is:

AMP
CEN (for holders of <5000 shares)
FBU
GPG
OZY
PFI
RPL
TWR
URB (holders of >1000 shares)

I had a search through the NZX website, couldn't find a list of coys with DRPs.

The possibles list:

TPW
AIR
TNZ
FNZ
MDZ
KIP
CNZ

Any confirmation on these would be appreciated.

[zacman]

don't forget TEL

z'man

[kiwikauri]

FNZ does have DRP

[TerryA]

Kingfish, KFL, is introducing a DRP later this month.

[Placebo]

Updated list:

AMP
CEN (for holders of <5000 shares)
FBU
FNZ
GPG
OZY
PFI
RPL
TEL
TWR
URB (holders of >1000 shares)

I had a search through the NZX website, couldn't find a list of coys with DRPs.

The possibles list:

TPW
AIR
TNZ
MDZ
KIP
CNZ

KFL introducing one this month.

I'm really surprised there aren't more. These schemes strike me as a good way to encourage shareholder loyalty, and from a holder's point of view if you are a buy-and-holder then it's the perfect opportunity to compound without incurring brokerage.

[trendy]

If you want to get into US company DRIP and DSPP (direct share purchase plans) have a look at these to sites.

http://www.melloninvestor.com/newMISWeb/index.asp
http://www.adrbny.com/

The bank of New York deals with ADR's primarily i.e. NZT which is the NYSE Telecom listing.

[Paper Tiger]

FTX announced this morning that is introducing a DRiP soon.

[Dazza]

PBG has a DRIP scheme

[rmbbrave]

PVO will imtroduce one...

"The proposed dividend will be tax paid in the hands of New Zealand
shareholders, utilising accumulated imputation credits. Shareholders will be
given a choice of reinvesting through a dividend reinvestment plan or
receiving a cash payment," said Mr Wolfenden.

[kiwikauri]

SKC has just reintroduced its DRP for teh 112cps dividend payable 1/4/05.

[nelehdine]

12c SKC divi not 112c ... just in case you were all rushing off to place buy orders !!

[nelehdine]

I think the Contact scheme is the best as I understand that they buy back the same number of shares in the market and cancel them as they have issued in the DRP ... no dilution of eps for those that need the cash divi rather than more shares. EXCELLENT !!

[craic]

Yes, Nelhdene, but it only opertates for holders of 5,000 shares or less.

[nelehdine]

That probably covers 95% of CEN shareholders !!

[Placebo]

SKC has become the latest (?) or at least another to introduce a DRiP. Or in their case, reintroduce.

So add SKC to the list. Now the trick is where to find details on how to sign up. Nothing on Computershare or SKC websites.... do companies mail out this sort of notification to shareholders?

[k1w1]

DRP's are good for shareholders who don't follow the markets or the average small shareholder. But if you are an investor who keeps an eye on the market then you can do better.

The reason is that any management worth their salt is going to try and get the best price for their shares from the DRP funds - which can be quite substantial. As the investment times are predictable it is not difficult to massage announcements and timings so that DRP's are reinvested at a time when the SP is high. Check the charts for the SP at time of DRP for your co of choice and see whether this applies or not. If you are patient you can pick up cheaper than the DRP price.


What to do with small divys ? Accumulate them. If you are a market watcher it is the way of the share market for things to rise and fall.You can then pick up stocks in dips. Recent examples for me are CUE shares, IBA.AX shares, IFTWB's, and WAMO.AX. I use dividend monies as my punting fund ase it feels like it doesnt come out of my pocket directly.

Maybe I'm too cynical about company management.

[Steve]

Should we add AIR to the list of DRPs?

[scamper]

yep to AIR.
Has announced its drip today. price struck at 97.5% of the average price for five days after the record date.
Reckon i'll take up the air drip as i have so few shares, the divi is only a restaurant meal for two...

[Dazza]

does AIA have a drip?!

[Placebo]

Nope


quote:We can advise that Auckland International Airport Limited does not
operate a dividend reinvestment plan.


Many thanks,

Chris Curley
General Manager - Corporate
Auckland International Airport Ltd

[limegreen]

FTX is also instating a DRP. The information is in the mail...

[bermuda]

As a general rule companies that operate DRP's are short on cash.(imho)

[Lawso]

One odd side-effect of DR schemes is that the better the coy's share price is doing the fewer shares you receive. Because (to state the bleeding obvious) the monetary value of the dividend goes to "buy" a certain number of shares and as the s p goes up the number of shares issued goes down.

This doesn't bother me with PFI, now the only NZ stock whose DRP I use, because the s p shows little growth and the holding builds up nicely through rising divs + compounding.

But I'm also in a fund which invests in Aust. listed property trusts. It has shown excellent gains lately as a result of the strength of the lpt sector (esp. Westfield) but the number of units I'm issued with keeps declining. The recent quarterly distributions, working backwards from 31.12.04, have been:
30.10 units
52.51
48.74
96.33
81.65
70.61
71.92
88.03
etc etc

Mustn't grumble though. After a year or so of nil or negative returns soon after I joined in 1999, the investment has since grown by 150+%. I just leave it in the bottom drawer and let it keep on growing.