SUM - Summerset Group

[Ggcc]

I have always found that when I have invested in companies with a dividend reinvestment scheme, It has always proven better for me to take the cash and invest in your other lower valued shares. Nothing wrong with the company/share, only if you fear that you will spend the money........Give me the cash please

[Antipodean]

Re the $0 DRP or not, I'm in the 'depends what you want out of it' camp.

I want my 'automated' portfolio via ASB to track what funds I have put into equity investment versus current value, nothing more. I think 'charging' for the DRP shares makes dividend stocks look worse than growth stocks.

Though it could be argued I'm putting money into the stock when the DRP transacts compared with taking the cash, I want the psychological incentive of 'free' shares to continue to commit to the DRP. Especially when I was first investing as ignoring the brokerage was a pivotal factor for me.

[Vaygor1]

Re the $0 DRP or not, I'm in the 'depends what you want out of it' camp.

I want my 'automated' portfolio via ASB to track what funds I have put into equity investment versus current value, nothing more. I think 'charging' for the DRP shares makes dividend stocks look worse than growth stocks.

Though it could be argued I'm putting money into the stock when the DRP transacts compared with taking the cash, I want the psychological incentive of 'free' shares to continue to commit to the DRP. Especially when I was first investing as ignoring the brokerage was a pivotal factor for me.

I used to share your perspective (the psychological incentive of 'free' shares) Antipodean, but with CDL Investments (CDI) whose DRP is still trucking along.
The DRP also ensured my shareholding wasn't getting 'diluted' by not being in it while some of the big players were.

However I decided a few years back to get out of the DRP scheme and just buy the same number of shares the DRP scheme was likely to offer (plus a bit for contingency purposes) at a price that I want to buy at (as opposed to being dictated to by a strike price) a few months before the DRP record date. The forthcoming dividend income would then pay back the amount paid.

So far, that decision has paid off handsomely.

If your disciplined enough to take this approach, have a think about it.. especially for a growth stock like SUM. I am just offering food for thought on the subject.

[Brain]

I have often thought about DRPs . My casual observation is more often than not shares can be purchased on market for less then the DRP strike price. A company raising more capital by way of a DRP is a positive provided the money is put to good use.

[silu]

DRPs are great for small time investors like me where brokerage would eat up any gains from a lower SP vs DRP strike price.

[Antipodean]

I used to share your perspective (the psychological incentive of 'free' shares) Antipodean, but with CDL Investments (CDI) whose DRP is still trucking along.
The DRP also ensured my shareholding wasn't getting 'diluted' by not being in it while some of the big players were.

However I decided a few years back to get out of the DRP scheme and just buy the same number of shares the DRP scheme was likely to offer (plus a bit for contingency purposes) at a price that I want to buy at (as opposed to being dictated to by a strike price) a few months before the DRP record date. The forthcoming dividend income would then pay back the amount paid.

So far, that decision has paid off handsomely.

If your disciplined enough to take this approach, have a think about it.. especially for a growth stock like SUM. I am just offering food for thought on the subject.

It's an interesting thought thanks - this thread is making me reconsider. I'm getting closer to the point where brokerage isn't eating a significant portion and can seriously look into this.

[Beagle]

I used to share your perspective (the psychological incentive of 'free' shares) Antipodean, but with CDL Investments (CDI) whose DRP is still trucking along.
The DRP also ensured my shareholding wasn't getting 'diluted' by not being in it while some of the big players were.

However I decided a few years back to get out of the DRP scheme and just buy the same number of shares the DRP scheme was likely to offer (plus a bit for contingency purposes) at a price that I want to buy at (as opposed to being dictated to by a strike price) a few months before the DRP record date. The forthcoming dividend income would then pay back the amount paid.

So far, that decision has paid off handsomely.

If your disciplined enough to take this approach, have a think about it.. especially for a growth stock like SUM. I am just offering food for thought on the subject.

SUM extremely cunning investors do what you've suggested mate and participate in the DRP

[Antipodean]

SUM extremely cunning investors do what you've suggested mate and participate in the DRP

Doubling down on SUM stocks is well worth it

[Vaygor1]

SUM extremely cunning investors do what you've suggested mate and participate in the DRP

Well. do both then ! ... and the 2% discount that SUM offers is an added reason to stick with he DRP I suppose.

..... but keep in mind with the DRP, you don't choose the price, and you don't choose the time. GLTAH.

[value_investor]

I'll take what I can get on the DRP, might not be able to get that price again in the future!