Dividend Reinvestment Plans Overview
A dividend reinvestment plan (DRIP) is an investment program offered to shareholders by certain corporate securities issuers. Shareholders who participate in the plan reinvest their cash dividends and buy additional shares of the company instead of receiving a cash payment.
Some plans also permit investors to make additional cash contributions to their plans. Like reinvested dividends, these are used to purchase additional shares in the company at little or no commission.
DRIPs are best suited for long term investors. Purchase and sale (if applicable) prices are not determined by the investor because transactions are executed on predetermined dates.
Generally, there are limits on investment amounts and the liquidation of plan shares may not be immediate. These factors limit the effectiveness of DRIPs for short-term investors.
Canadian anti-money laundering laws require CST to obtain information from optional cash participants. If you intend to make optional cash payments, please send CST a completed participant declaration form if you have not already done so, for the plan in question.
List of issuers with DRIP