Dividend Reinvestment Plans

[Aaron]

What do you mean "ASB Securities holds my shares"?

I don't currently use margin lending but have that option, so ASB Securities owns the shares so they can sell them in the event of a margin call. My shares but ASB securities holds them and needs to sign anything on my behalf such as DRPs, share purchase plans etc.

[oldtech]

The Fisher trio carry the remainder over and it is applied to the next DRP allocation, which is awesome.

Pretty sure I've never had it happen on any of my NZ shares ... hmm, maybe I should recheck.

I know for a couple of overseas shares our statement always showed "$x carried forward".

[777]

I don't currently use margin lending but have that option, so ASB Securities owns the shares so they can sell them in the event of a margin call. My shares but ASB securities holds them and needs to sign anything on my behalf such as DRPs, share purchase plans etc.

Thanks. You obviously have decided that way is the best way to do it. I am just reluctant to pass any control of my investments to someone else. I don't margin trade anyhow.

[Aaron]

Thanks. You obviously have decided that way is the best way to do it. I am just reluctant to pass any control of my investments to someone else. I don't margin trade anyhow.

Generally doing the opposite of what I do is a successful investment strategy based on past performance.

Not happy not holding the shares in my own name and not comfortable with debt especially with shares (i.e. don't invest more than you can afford to lose), but good to have credit available if I ever stumble onto the bargain of a lifetime (missed many), costs $250.00 a year for the privilege.

Nearly got margin called in 2008/09 (thought Aussie banks dropping 33% was the bargain of a lifetime, turned out they had a further 50% or so from where I bought before the bottom, should have held on though in hindsight.) and got to experience first hand how leverage amplifies gains as well as losses. Interesting looking at current margin debt growth in the US and imagine NZ similar. Lot of new entrants to the sharemarket interesting to see how things pan out over the next few years. Central banks will continue to play a big part one way or another.

[Aaron]

Is it me or are CEOs hanging on to every dollar at the moment. The latest round of dividend payments included a lot of DRPs. Well for my limited holdings it did.

Clouds on the horizon I wonder? They say equity is more expensive than debt but you can cut your dividend to zero without anyone liquidating the company which you can't with bonds.

When there is the magical central bank "liquidity" we hear so much about and rates are near zero, I guess it all just rolls over.