TSX:AAR.UN - Post by User
Post by
AHybridofStreetandStocksmartson Aug 29, 2014 12:03pm
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Post# 22890063
This is How a DRIP program can benefit all stakeholders
This is How a DRIP program can benefit all stakeholders
Given the following latest information:
AAR.UN stock price: $4.51
Total outstanding shares: 189,410,770
dustribution .026/share
Total distribution = 189,410,770 X .026 = $4,924,680.02 cash
If there was a DRIP program (with 100% participation) = $4,924,680.02/4.51 = 1,091,946.79 shares would have been bought in the open market.
This would definetly effect the stock price upwards. the key is to buy in the open market and not issue more shares for the distribution.
For an investor with 2000 shares, this would mean additional, commission free 11 shares/month
compunded by the new shares each month...it can add up to a good chunk over 10 years + stock appreciation.