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  1. #1
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    Default Left overs from dividend reinvestment plans

    For the first time in my investment journey Iíve 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). Letís 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?

  2. #2
    Speedy Az winner69's Avatar
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    Quote Originally Posted by epower View Post
    For the first time in my investment journey Iíve 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). Letís 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
    ď At the top of every bubble, everyone is convinced it's not yet a bubble.Ē

  3. #3
    Guru justakiwi's Avatar
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    In some cases the leftover amount is carried over and added to the next dividend pay-out. The Fisher trio all do this. In other cases you "lose" the leftover amount. There do not seem to be any legal requirements around this from what I can tell.

    Quote Originally Posted by epower View Post
    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?

  4. #4
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    I got paid out .97cents in Sept last year. I think it was the residue from my AGL DRIP that got carried forward.

    Now that you mention it I don't recall ever receiving any others but I am also not aware of another situation where something might have been due more than a couple of bucks.

    Probably only significant if you have a DRIP with Berkshire Hathaway.

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