RE:RE:RE:DRIPufoolme wrote: Anyone can instruct their broker or banker to use the proceeds of any dividends to purchase shares. That is not a DRIP plan. A company Dividend ReInvestment Plan typically pay the dividend amount in shares of the company in either discounted prices, commission free, or both. In the 2016 year end release, dated Mar 13, 2017, you will find this paragraph:
Cardinal pays a monthly dividend which is an important component of our business strategy and how we deliver value to our shareholders. We believe that we have created a sustainable business model that is able to fund its dividend through payment in cash. By suspending our dividend Reinvestment Plan ("DRIP") and our Stock Dividend Program ("SDP") we will be able to further maximize shareholder value by eliminating the dilution that the DRIP and SDP had on our per share performance. Eliminations of both programs will apply to our May 15, 2017 dividend payment to shareholder of record on April 28, 2017. Shareholders that were in the program will now automatically receive their dividend payment in cash.
Interesting. I didn't know that.. are there fees associated with instructing your bank to purchase shares? if not unless there is a discount what is the point of the drip?