Companies offering dividend reinvestment plans?

[Zedd]

Does anyone know a quick way of getting a list of companies that offer dividend reinvestment plans along with any discounts offered?

Alternatively, are there any favourites people have?

I'm looking to structure a significant portion of my portfolio towards long term growth based on DRPs. Is this a strategy anyone is familiar with? Pros and cons?

 

[ChilliBlue]

Hi

The ones that I am aware of because I have the stocks are:

BHP, WBC, CBA, GFF, WPL, MQM, WES, SHL, IAG, TFS.

That is if my memory serves me correct.

Just be careful when buying a stock for the dividend only.

 

[awg]

big pro..if DRP is at discount..ie 2.5% is common

big con..record keeping/accounting when you sell/transfer, you may have a large number of different prices to take into account (this will happen, as eventually you will die)

pro and con..easy/lazy way to invest, great if the company is a very good one, bad if they are not

dollar cost averaging

can you afford to pay the tax bill on the reinvested divs?

 

[Bill M]

Does anyone know a quick way of getting a list of companies that offer dividend reinvestment plans along with any discounts offered?

Alternatively, are there any favourites people have?

I'm looking to structure a significant portion of my portfolio towards long term growth based on DRPs. Is this a strategy anyone is familiar with? Pros and cons?

I use Comsec and find it quite useful for getting this information on a company by company basis. I click "News and Research" enter the company code and then click the "company info" tab. On the right hand side it shows if there is a DRP and what the discount is.

About DRP's, I do not use them. The 2 biggest reasons are that when you sell you have to calculate the capital gains for each 6 Monthly reinvestment, this can be time consuming. Also the DRP maybe reinvested at a price that may be too high at the time. I prefer to pool all my income distributions then buy a stock that I like at the price that I want. But that's just me and DRP's could serve you well otherwise, good luck.