For the first time in my investment journey I’ve elected to participate in a dividend reinvestment plan.
This is with Ryman and Property for Industry.
My question is what happens to the dividends left over? Say I have $1000 of shares and the dividend is 2% ($20). Let’s say the share price is $3 so I get 6x new shares ($18 worth) but what happens to the $2 left over at the end?
Generally they hold the left overs to the next dividend ... in the example they'll add .66 shares to that ($2/$3)
Suppose if you sell or they don't continue with DRP you lose out
Always been a bone of contention . the evils of rounding
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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