RE:RE:RE:RE:DRIP @ 80 CENTS HIGHER THAN MARKET YESTERDAY ??I think its a mistake to view this as having paid a "premium". You paid the average volume-weighted market price over a period of (likely) 3-5 days. Sometimes the pay date market price will be lower than the average, and sometimes it will be higher. DRIPing is something you normally do for a long period of time, and over a long period of time these differences will tend to balance out.
More important is the stock's intrinsic value vs market price, because this is where a premium, discount, or neither, truly exists. You shouldn't DRIP an overvalued stock (because DRIPing is buying and you should not buy something for more than it is worth); better to accumulate the cash and buy something else that's undervalued.
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alhiemstra wrote: I stand corrected - I am with Scotia I Trade - I thought I had Enbridge DRIP but after making enquiries I have a DPP - Dividend Purchase Plan which is used when DRIP not offered to purchase additional shares Commisssion FREE !!
I have been using in RRSP & TFSA accounts only but am going to reconsider after such a big premium which more than reverses the FREE commissions!