# DRIPing ADRs



## mrPPincer (Nov 21, 2011)

So, just found out CIBC IE won't drip my two ADRs in my TFSA, BT and BBL, seems from talking to their rep they aren't DRIPing many or any US ADRs right now and he wasn't sure why.

Just wondering, do any of you have any knowledge or experience regarding DRIPing US ADRs with CIBC or any other brokerage that could shed some light on the why.. er rather why not?


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## Toronto.gal (Jan 8, 2010)

mrPPincer said:


> So, just found out CIBC IE won't drip my two ADRs in my TFSA, *BT and BBL*, seems from talking to their rep *they aren't DRIPing many or any US ADRs* right now and he wasn't sure why.


Foreign ADRs are not eligible for DRIPping, unless the companies were to offer what is called a Scrip Dividend Scheme, which is done in some [most?] cases for tax reasons & most importantly to preserve cash, hence are temporary arrangements. 

With the scheme programme, the shares are issued by the companies via their depositary banks/transfer agents in the US, and subject to issuance fees.

Here are some examples:
http://www.shell.com/global/aboutshell/investor/dividend-information/scrip.html
http://www.santander.com/csgs/Satel...Shareholders-US/Santander-Scrip-Dividend.html


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## gardner (Feb 13, 2014)

I can see why real live DRIPs could be a complex nest of issues, but why would there be any complexity in synthetic DRIP?


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## Toronto.gal (Jan 8, 2010)

gardner said:


> why would there be any complexity in synthetic DRIP?


I have had no problem DRIPping US[American]/Canadian stocks with IE, but as mentioned above, the ADR eligibility for this is limited. Are others here able to reinvest ADRs synthetically with other brokers? 

In fact, in the DRIPping dept., CIBC is the one that offers the most flexibility I believe. I have heard that you can't even DRIP American stocks with some brokers [BMO], and not even all domestic stocks for that matter - the latter applies to all brokers - each seem to have their own list of eligible companies, but no idea why that is, because as u said, what's the difficulty with a synthetic DRIP unlike the scrip or true DRIP?


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## gymchamp (Apr 25, 2015)

ScotiaItrade allows me to drip US and CAD stocks as well. ADR's no. Very curious if anyone has or knows of any discount brokers that allow it?


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