RE:RE:RE:A question for investors
I am also a long time long on this one. I generally don't use DRIP's as I prefer to reinvest the dividends among the stocks in my holdings that offer the best value at the time. That said I think DRIP's are a good idea for smaller accounts as it re-invests the dividends at a faster rate.
I've often wondered why companies with a discount don't provide a ratchet mechanism like some preferred shares do on the rate of interest paid (Bombardier preferred B rate of interest varies according to the preferred share price performance for example) where the discount varies according to the share price performance. For example, full discount if the share price is more than 80% of 52 week high, Half of the premium discount if the share price is between 50% and 80% of the 52 week high. No discount if the price is less than 50% of the 52 week high. This would mitigate some of the dilution due to the premium discount.
Following Temerty's lead is a good choice..
Cheers. Send some sunshine our way and strong winds to the North Sea