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Cenovus Energy Inc T.CVE

Alternate Symbol(s):  CVE | CVE.WS | T.CVE.WT | T.CVE.PR.A | CNVEF | T.CVE.PR.B | T.CVE.PR.C | T.CVE.PR.E | T.CVE.PR.G

Cenovus Energy Inc. is a Canada-based integrated energy company. The Company has oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The Company's segments include Upstream, Downstream, and Corporate and Eliminations. Its Upstream segment includes Oil Sands, Conventional, and Offshore. Its Downstream segment consists of Canadian Manufacturing, and United States Manufacturing. The Company's upstream operations include oil sands projects in northern Alberta, thermal and conventional crude oil, natural gas and natural gas liquids (NGLs) projects across Western Canada, crude oil production offshore Newfoundland and Labrador and natural gas and NGLs production offshore China and Indonesia. The Company's downstream operations include upgrading and refining operations in Canada and the United States, and commercial fuel operations across Canada.


TSX:CVE - Post by User

Comment by Albatrosson Oct 15, 2021 12:25am
241 Views
Post# 34007985

RE:DRIP = basically Share Split, Dilution, and paying TAX.

RE:DRIP = basically Share Split, Dilution, and paying TAX.You seem to be confusing a special DRIP program offered by a company where they will usually offer you an extra 10-15% on top of the normal dividend if you sign up for the program. It's a way for the company to continuously raise capital but yes it does cause dilution because essentially you are giving them your cash and they are in return giving you more shares..

This is not to be confused with a simple brokerage drip whereby one simply uses what would otherwise be cash to purchase more share ON THE OPEN MARKET. Which of course equals zero dilution.

In reference to the simple brokerage drip the benefit is they will purchase those shares at no extra fee, where normally a transaction will cost $10. Also important to think about compounding interest. If one subscribes to a drip with a share that provides monthly dividend (ie. Pembina) then you will have monthly compounded growth on the reinvestment of your dividends... it can make a big difference, and you don't have to try and time the market.

Cheers
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