# Dividend Reinvestment Plan Question



## clowboy (23 January 2005)

Hi,

Hoping someone can answer this question for me.

If you participate in the DRP of a company but sell your share (after EX-DIV date) what would happen to your dividend entitlement?  Would they send a check or would you be issued with shares?

Thanks


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## JohnnyC (14 June 2011)

clowboy said:


> Hi,
> 
> Hoping someone can answer this question for me.
> 
> ...




Hi Clowboy,

You would be issued with new shares.

Regards,
John


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## bond21 (25 August 2015)

*Quick question about Dividend Reinvestment Plans*

So I'm reading up on them and some American sites are saying if you want to sell the shares you've acquired on the DRP, you have to sell them back to the company that issued them. That you can't sell the DRP shares on the open market. 

Now I don't believe that's the case in Australia, I thought the shares you got in the DRP are the same as if you bought them on the open market, they're just additional shares being issued by the company. So I'm thinking it's a difference between Australia and the US but I'm not 100%.

So just want to confirm that the shares you acquire on a Dividend Reinvestment Plan are in fact able to be sold on the open market, and have no restrictions.


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## ROE (25 August 2015)

*Re: Quick question about Dividend Reinvestment Plans*



bond21 said:


> So I'm reading up on them and some American sites are saying if you want to sell the shares you've acquired on the DRP, you have to sell them back to the company that issued them. That you can't sell the DRP shares on the open market.
> 
> Now I don't believe that's the case in Australia, I thought the shares you got in the DRP are the same as if you bought them on the open market, they're just additional shares being issued by the company. So I'm thinking it's a difference between Australia and the US but I'm not 100%.
> 
> So just want to confirm that the shares you acquire on a Dividend Reinvestment Plan are in fact able to be sold on the open market, and have no restrictions.




yes DRP shares plan in Australia rank the same as all other shares and you can sell them on open market,
your holding will increase by X amount of shares after your DRP purchase has been allocated


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