I'll see how my little order goes today then. Last sell price is 9.9c which I am bidding to buy at but best bids in depth are 9.6c so there is room for a better price.
Printable View
new platform coming from FLINT. Probably another hopeless platform like SH.
NZherald
I'm told Sharesies don't allow you to participate in DRP, this is a serious disadvantage, Is this correct?
It's not a serious disadvantage, though. DRP can be good or bad - and one frequently ends up with additional shares which are ways too dear (every time the SP drops after the DRP event ...).
The discount against market price is (for a small number of shares) peanuts. If you hold larger number of shares, then it anyway makes sense to use a different trading platform and hold the shares by yourself.
You can transfer your shares out of Sharesies then get DRP.
Correct. When you use Sharesies, any share registry functions like enabling DRP are not available, because you don't actually own a anything according to companies actual share registry.
In regards to companies saying their customer funds being are "held in trust", "held in nominee" you are still relying on them to transfer it to a nominee or trust account in the first place... we've seen what has happened to other companies that say they do this, here is one recent example:
https://www.odt.co.nz/star-news/star...ver-wages-rent
I'm not saying this will happen to Sharesies, but it is certainly not impossible.
Never participate in dividend reinvestment plans. The discount is tiny compared to the normal volatility of the share price. And the share price always seems to be at the top of it's range when the dividend is paid. But most of all it is too depressing a few years down the track to see the current share price lower than the dividend shares were issued at. Take the money and reinvest it how you will.
Thanks for that. Just having a think about it, sharesies is the perfect vehicle for dividend reinvestment. You can actually re-invest dividends on all companies on the NZX (or US for that matter). You do not even have to be in a company that offers a DRP. Because your dividend of $136.50 can be used to buy exactly $136.50 of that same companies stock. You cannot (well it would be inadvisable) do that with any other broker. Even a dividend of $1.32 could be re-invested. Hell even a dividend of $.26 could be re-invested. By virtue of them having no minimum brokerage it opens up all sorts of possibilities.
Interesting point. That's not how I thought it works, but admittedly I didn't check. As well every company has their own DRP policy.
However - most companies take the average SP over a handful of days prior to dividends being paid, and this is already after they went ex-dividend, i.e. I expect the discount (if offered) is normally for real compared to the chosen (ex-dividend) average.
However - it well might pay to check this for whatever company you intend to subscribe to the DRP.
Sorry I was moving house without the internet and didn't come back to this thread last week.
Thank you so much everyone for your kind words and usefull information on different platforms!! I've now decided to try with ASB and am going to open an account with them next week.
Thank you very much for sharing your experience with ASB!! I found feedback about them are generally good, am going to open an account and try it myself next week. For ASX market I feel commsec is really efficient on order verification and execution, except those few big crash days in March, eveything just went instantly. Their market depth information is comprehensive as well.
Agree, no multiple order on the same stock is also a big negative for me.
Thank you Bull, I will look into this company when it arrives in NZ.
Hi BP, thank you very much for shareing your experiences with directbroking. You're right DB's service is normally not bad. I buy and hold NZ shares as well (trade ASX shares through commsec only), had no problem with them since I registered 2 years ago. The issue happened only when I wanted to sell one of my NZ holdings recently.