# Managing 'real' DRIPs and SPPs



## swoop_ds (Mar 2, 2010)

I'm in the midst of getting 7 drip stocks that have SPP/OCPs:
BNS
FAP
FTS
ENG
REI.UN
SLF
TRP

They all have varying SPP minimums and various SPP dates. I think I have it all figured out as to when I would pay who and how much. I have a set total that I want to invest per year and perferably spread evenly over the stocks. This makes it difficult to juggle it all but I think I have it figured out.

Does anyone have a good way to 'manage' this? Or does everybody just figure out a schedule for sending in cheques?

Thanks,
-Dave


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## Toronto.gal (Jan 8, 2010)

swoop_ds said:


> 1. They all have varying SPP minimums...
> 2. does everybody just figure out a schedule for sending in cheques?


1. And maximums, but I guess most of us don't have to worry about that. 

2. For the ones with only quarterly OCP plans, like SLF, it's easy; 4 cheques a year by the required date. Amount of cheque would depend on many factors, like earnings/stock performance/dividend, etc. 

For the ones with monthly options, I have a schedule and a disciplined payment plan as per my accumulation goals per company; cash available, etc. 

I basically have a chart like the one below for my OCP enrollment of various companies: [I added an extra column to show payment amount & # of shares purchased]. 

https://www-us.computershare.com/Content/Download.asp?docId={5B71BDD7-2D18-48DE-BF71-67CD2E5D8C64}&cc=CA&lang=en&bhjs=1&fla=1&theme=cpu

The cut-off dates are very important because if you miss them, your share purchase won't be made until the following month or quarter [sometimes may work in your favour, other times you'll want to scream].

You'll of course also have to keep track of your ACBs, but this is not what you are asking.

If you'll only send 1 cheque per company per year to the Transfer Agents [assuming your commission fee with your discount broker is $10], you would be saving $70 commissions per year/$140 if you send payments twice per year, etc.

The biggest disadvantage with 'real' DRIPs, is the fact that shares are only purchased on set-dates, so for this reason, I have synthetic drips as well, so as to be able to buy shares in 'real time' when there is blood on the streets.


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## swoop_ds (Mar 2, 2010)

Just wondering, can you send cheques to the Transfer agents 'early'? For example, can I send a cheque three weeks before the buy date, just to ensure that it's there when it needs to be there?

Also, I'm assuming that I can't, but, can you send a whole year's worth of cheques at once?


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## Toronto.gal (Jan 8, 2010)

Sure you can send a few days/weeks in advance. 

But why send post-dated cheques a year in advance? To save on stamps? I would not recommend this for obvious reasons, just think about it. Anyhow, I have no idea if this can be done, so you would have to call them and ask that yourself.


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## swoop_ds (Mar 2, 2010)

Yeah the posted dated cheques thing is a little flawed. I think I have the 'schedule' worked out for now. 

Thanks for the help!


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## Cal (Jun 17, 2009)

Not to sound a little impatient, but I have posted the www.dripinvesting.org site for you already. These questions have all been answered there, they have a beginners section. It is a click away, and is a great resource.

Your 'real' drips are traditional drips.

Yes. Every company has its own schedule. I normally drop the cheque in the mail a month before it is due.

Sending a years worth in advance of cheques just opens the door for the transfer agent to misplace them.

If you never plan on selling your REI.UN, you should be ok, but if you are, a REIT is best kept within your TFSA.

It may seem daunting to begin, but after a year or two, you won't even need to look at your payment schedule, you will know it outright.

Good Luck!


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