# how to DRIP in questrade?



## joncnca (Jul 12, 2009)

is it possible to DRIP a dividend stock/etf in questrade? how does one set this up, or is it automatic, once your dividend payout is enough to buy another unit?

thanks!


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## lewin (Jan 10, 2011)

It used to be easy to find on their site but I didn't have any luck just now. There's a form you fill out and fax/mail in where you indicate "all eligible securities" or "these selected securities...". After you send in the form it's automatic.


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## Four Pillars (Apr 5, 2009)

Thanks for the reminder - I need to do this as well.

This explains the plan: http://www.questrade.com/trading/stocks_dividend_plan.aspx

To get the form:

Login to MyQuestrade and go to: http://media.questrade.com/downloads/accounts/add_div_purchase_auth.pdf

Put the securities you want to enrol in the appropriate boxes and then I believe you have to mail the form to Questrade.


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## tendim (Nov 18, 2010)

lewin said:


> It used to be easy to find on their site but I didn't have any luck just now. There's a form you fill out and fax/mail in where you indicate "all eligible securities" or "these selected securities...". After you send in the form it's automatic.


IIRC these are synthetic drips though, so you do not get partial shares or any of the DPP or DRIP benefits offered by dripping through the actual company.


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## Four Pillars (Apr 5, 2009)

tendim said:


> IIRC these are synthetic drips though, so you do not get partial shares or any of the DPP or DRIP benefits offered by dripping through the actual company.


Yup - that's true of all the discount brokerages.


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## humble_pie (Jun 7, 2009)

some discounters do offer the nice discount to average market price for the pricing period, though.

like 2-5% off market price for the dripped shares.

don't know if questrade does this ...


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## dilbert789 (Apr 20, 2010)

On questrades site they said they will buy shares at the market price.

On a related question:

What would happen if you setup the synthetic drip through Questrade, then later find out that the shares you own are giving a DRIP discount, so you setup the drip directly though the company? 

I'm guessing but I would think that the company drip would happen first, and therefore Questrade wouldn't have any dividend to drip with.


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## Four Pillars (Apr 5, 2009)

humble_pie said:


> some discounters do offer the nice discount to average market price for the pricing period, though.
> 
> like 2-5% off market price for the dripped shares.
> 
> don't know if questrade does this ...


Humble - do you know which ones offer this?


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## Cal (Jun 17, 2009)

dilbert789 said:


> On questrades site they said they will buy shares at the market price.
> 
> On a related question:
> 
> ...


You would have to request a share certificate to drip the shares directly, I have no idea what Qtrade charges for that ($50 w TDW), then register the shares, and begin dripping. You only need 1 share to begin dripping on your own, so you would not have to request a cert for all shares from Qtrade. 

More info on dripping that may help you in this regard at www.dripinvesting.org


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## Toronto.gal (Jan 8, 2010)

I don't remember exactly, but someone said that Qtrade charged $250 for the certificate or something close to that. 

Scroll down to see the discount list.

http://cdndrips.blogspot.com/


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## joncnca (Jul 12, 2009)

so i see that there will be no commissions charged under the DPP, but it mentions a monthly billing charge may apply.......is this some BS, and they basically recoup the costs of the commissions?

also, the info page for DPP says:

The dividend received on the record date must be large enough to purchase a minimum of one unit of the security (based on the market price of the trade date). It is the client’s responsibility to ensure their share balance meets that condition. 

Does this simply mean that if the dividend received is not enough to buy 1 unit, it will simply not be bought; it's my responsibility to figure out if i get enough in dividends? no big deal, just won't purchase a unit automoatically.

OR....does it mean there could be some consequence if i go ahead and set up the DPP, but i don't have enough in dividends to buy 1 unit...for instance, maybe i'll get charged with and NSF fee or something like that....maybe that's the 'monthly billing charge'?


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## Toronto.gal (Jan 8, 2010)

I'm not with Qtrade, but I don't think you would be charged for any DPP service as other [major] brokers don't; to be sure however, why don't you call them.

If you don't have enough dividends to buy full shares, the cash will simply be deposited into your account. It should not matter whether your DRIP is set-up or not, if there is not enough cash, nothing will be done & there should not be any consequences, but confirm with your broker.


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## Four Pillars (Apr 5, 2009)

Jon - Why don't you just give them a call?

To everyone who shortens "Questrade" to "Qtrade" - please be aware that there is a different brokerage with the name "Qtrade".


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## Toronto.gal (Jan 8, 2010)

Thanks FP.


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## Jon202 (Apr 14, 2009)

1.) Some discount brokers honour DRIP discounts, some don't. I've tried to keep them documented here: 
http://www.dripprimer.ca/canadiandiscountbrokers

2.) Synth DRIP is whole shares only. So yes, if you get $10 of dividends/distributions that payment and the moment the broker goes to buy the shares the price is $10.10, no reinvestment. Cash is simply deposited.

3.) For #2, most brokers don't respect the price reinvested that 'registered' shareholders get their dividends reinvested at. Usually for the same reason as in #1. They administer it on their own.

4.) Only those shares registered in YOUR NAME with the Transfer Agent will count towards the DRIP for the discount/free share purchase plan. Shares in a discount brokerage account are not actually in your name, rather they are held "in Trust" by the Broker for you. (You are the Beneficial Owner) So you would have to request a certificate and pay the fee to have those shares registered in your name and become the Registered Owner.


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## joncnca (Jul 12, 2009)

ok, i'll call them....(moan)...i HATE calling most services....few things i hate more than being on hold. 

incidentally, my credit card company never needs to put me on hold, but calling usually means there's some kind of problem..haha

thanks for that info, Jon202.


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## m3s (Apr 3, 2010)

joncnca said:


> ok, i'll call them....(moan)...i HATE calling most services....few things i hate more than being on hold.
> 
> incidentally, my credit card company never needs to put me on hold, but calling usually means there's some kind of problem..haha


Just use chat on Questrade, they always answer me quickly, much faster then waiting for random forum answers. Credit card companies always answer but then read you stupid dialog and try to push insurance etc

Am I missing something or is synthetic drip a complete waste of time? I just pool all the dividends together into new contributions to buy something I want at a conscious time/price. I don't really like the idea of buying for market price in such volatile times


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## Sherlock (Apr 18, 2010)

lewin said:


> It used to be easy to find on their site but I didn't have any luck just now. There's a form you fill out and fax/mail in where you indicate "all eligible securities" or "these selected securities...". After you send in the form it's automatic.


This is correct. Also, if you select "all eligible securities" it will only apply to the eligible stocks you hold at the time you fill out the form, not to any new stocks you buy later. If you buy more stocks you want to drip you will need to call in to tell them to add those to the list.


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## Sherlock (Apr 18, 2010)

mode3sour said:


> Am I missing something or is synthetic drip a complete waste of time? I just pool all the dividends together into new contributions to buy something I want at a conscious time/price.


But then you have to pay a commission, with a drip you don't. Also if you don't drip it may take a long time for the cash from the dividends to add up to be enough to purchase something new, and during that time your cash will just be sitting there earning nothing.


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## Lephturn (Aug 31, 2009)

Sherlock said:


> But then you have to pay a commission, with a drip you don't. Also if you don't drip it may take a long time for the cash from the dividends to add up to be enough to purchase something new, and during that time your cash will just be sitting there earning nothing.


On the flip side if your dividend portfolio is large enough this gives you the cash to rebalance. Yes you pay commissions on the new purchases, but if you are rebalancing regularly you'd need to do that anyway. This way I'm not having to sell anything to do my rebalancing.

Now if you are regularly contributing cash maybe this isn't a big deal, but I tend to do a couple of lumps during the year, so it seems to work much better for me to use the divs to rebalance.

Quick specific example - two of my holdings are BCE and RY - BCE's price has held up very well while RY has come down 25% off or it's highs. My dividends from BCE have been basically combined with RY's and other dividends to bring my RY back up to it's target weighting. It forces me to essentially buy more low and at least not buy more high.


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