RE: RE: 3% discount on DRIP!!Billy_SysaPHUS__Here I have thought for many years that you weren't the brightest investor around__BUT turns out I was wrong!
That was a brilliant scenario you put out__Sign up for the newly announced 3% discounted DRIP__And then really cash in when Telus goes down 25% in the upcoming double dip recession next year, exacerbated by the inevitable TWU strike.
I did the numbers over the weekend and they look spectucular!
Using a base price of say 31.75 and $1000 of dividends per quarter__then with the 3% discount I would get 32 new shares priced at 30.80.
When Telus dips the 25% to 23.81, plus the 3% discount, then I would get 43 new shares priced at 23.10.
So with a 25% dip I would end up getting 35% more shares than at the base price__This no doubt is what you were getting at you genius!
And the real beauty of this is that all the time Telus will keep pumping out its juicy dividend, currently around 6% yield__Thus for a long term Warren Buffet type buy and hold investor, in the long run it is meaningless whenever Telus temporarily dips 25 or whatever %__As long as they keep pumping out and periodically increasing the dividend payout then Telus will be a true money machine that an investor can count on just like our big banks.
So Billyus, like I said, I was wrong about you__this newly announced 3% discounted DRIP will be the way to secure my future__So I am for sure going to sign up for it__all thanks to you bringing this to my attention!
And in my analysis I didn't even try to factor in the extra compounded shares which I will be getting since every time I get my DRIP shares, then the next quarter all those shares will just add to the number of discounted new shares I will be getting the next quarter, etc, etc.
NICE!