# How to use DRIP (Dividend Reinvestment) using web broker



## gladaki (Feb 23, 2014)

Guys.

I usually invest in TD eseries. After a recent drop in oil and gas, I am of looking at Baytex, Husky,Cenovous and few others.
Going through Baytex website it says that share will be issued on 95% of market value.

Just wondering How this works ?


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## avrex (Nov 14, 2010)

Just contact TDDI.

Baytex DRIP Frequently Asked Questions



> Shareholders who hold their Shares through a broker, investment dealer, financial institution or other nominee (commonly referred to as beneficial shareholders) can contact the party holding their Shares to request that their shares be enrolled in the DRIP. Beneficial Shareholders should also be aware that (i) certain brokers, investment dealers, financial institutions or other nominees may not allow participation in the DRIP and (ii) certain brokers and investment dealers may reinvest dividends received by their clients by purchasing additional Shares in the open market at prevailing market prices (in which case such clients would not receive the discount offered under the DRIP for Shares acquired from treasury)


Also...


> Effective with the dividend to be declared on or about December 15, 2011, any common shares issued from treasury under the Dividend Reinvestment Plan of the Corporation shall be issued at *97%* of the Average Market Price (as defined in the Plan).


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## 0xCC (Jan 5, 2012)

avrex said:


> Just contact TDDI.


It really is this easy. Call them up, say you want to start a DRIP on whatever stock you are interested in and if that stock gives a discount to the market price for DRIPs you will get that. The only downside is that you won't get fractional shares, only whole shares will be purchased. I think if you go though the process of registering directly with the company you could get fractional shares. 

What this means is that if you get $10 in one dividend payment (in a month or quarter or whatever) from a company and their stock happens to be trading at $5.10 you will get 1 share purchased and $4.90 of cash left over.


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## Eclectic12 (Oct 20, 2010)

^^^^

It is a down side that the broker DRIPs only do full shares so the investor has to figure out what to do with the remainder.

However, where one registers with ten different company DRIPs - one may be receiving ten different statements instead of a consolidated one.


Cheers


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## Cal (Jun 17, 2009)

I think you can even go further if you like and direct TTDI to have all drip-able companies drip all shares upon the dividend payment dates. So you don't even have to mention each holding if you want to drip all.


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## My Own Advisor (Sep 24, 2012)

Just to add more...

When you call your discount broker, you can ask them to:

-enlist the entire account and all holdings in a DRIP, or
-enlist only some holdings inside an account in a DRIP.

Correct on points above, for stocks at brokerages, only whole shares can be reinvested so there is usually cash leftover. You can simply let the cash accumulate for future purchases of the same or new investments.
http://www.myownadvisor.ca/drips/


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