RE:RE:TD increases target price to $24.50A DRIP is a Dividend Reinvestment Program where the dividends paid out by the company are automatically reinvested in more shares.
The easiest DRIP to set up is through your brokerage, it is called a "synthetic DRIP" where the cash dividend must buy a whole share, not fractional shares.
Lets look at you situation. Currently Whitecap pays a dividend of $0.0625 monthly. With your 1000 shares you would recieve $62.5/month in dividend payments. Now if you were to use a DRIP assuming that the share price remains at $17.67.
1st month : 1000 shares * 0.0625= $62.5 cash dividend --->DRIP ($62.5/$17.67) = 3.53 hence the DRIP purchases 3 whole shares and the remainder 0.53 share or $9.36 gets paid in cash.
2nd month: 1003 shares * 0.0625= $62.68 ---> DRIP purchases 3 shares
3rd month : 1006 shares * 0.0625 = $62.80 ---> DRIP purchases 3 shares
4th month: 1009 shares * 0.0625 = $63.06 ---> Drip purchases 3 shares
5th month : 1012 shares
After 5 months you have 12 shares that are also paying a dividend. I know this looks insignificant but after a few years there is a snowball effect.
ciao vito