RE:RE:RE:QUINTY...RE: $USD Dividends,,,,,,,,,,ENB does not have a corporate DRIP If I recall correctly from previous posts over the years.
Your brokers DRIP sounds good but I am not sure why you would hold ENB in US funds just to DRIP the dividend anyway. The yield in CAD is not higher than the yield in USD and does have to be converted from CAD and then used to buy US ENB shares. I believe you would receive more shares in the DRIP if your held the stock and DRIPed in CAD. Not much maybe one maybe only fractional but more. Actually the only benefit I can see from DRIPing with the brokerage is that they wave the buying commision they do not give a 2-3% discount like a corporate DRIP would.
Anyway you're happy with what you're doing and making good returns off of ENB like the rest of us.
Go Enbridge! ;-)
Red_Deer wrote: Hey Quinnty__I do NOT Know IF ENB has a Corporate DRIP__But THIS is NOT an ISSUE as My ITrade DO their OWN ""DRIPs"" for pretty much ANY Dividend Paying Company__This IS One of
the things I Like About ScotiaITrade__the OTHER ONE is that I Pay ONLY PRIME RATE on My
rather Large Margin Account__in That Regard I SEE that AS OF Tomorrow My New Rate WILL
BE 5.95% due to the Half Point BOC Raise Today.
Less Certain about Your 2nd Question__But What I SEE is that DUAL LISTED CDN Companies USUALLY Announce WHAT the Actual Dividend WILL BE__BOTH IN $USD and $CDN__also RECORD/PAYMENT Dates__THUS I Would Think that there would be NO Exchange Fees AS LONG AS Your Holding WAS in Your $USD Account on the RECORD DATE.
Quintessential1 wrote: Thanks for the answers Red and just to be clear I was aware of certain things you mentioned as I do hold certain stocks in a USD account that I journaled over from CAD.
Points that I wouldn't mind clarrification on if you don't mind please:
1. ENB has a corporate DRIP still?
2. When dividends are paid to USD accounts from Canadian companies there isn't a currency exchange fee by way of a lower exchange rate given by the brokerage? It was always the case with my stocks that pay USD dividends even though I found it to be small.it was never the quoted exchange rate of the day(always less).
Thnaks for your previous answers and just to clarrify I do recieve one stocks dividends in USD that they pay in USD so no conversion. I then hold these dividends in my USD cash account and use them for international travel as the USD is king just about everywhere.
GTLY and Go Enbridge! ;-)
Red_Deer wrote: Hey QUINTY__You asked a number of Questions REGARDING How $USD Dividends are
Administered WITH REGARD to Bank/Brokerage EXCHANGE FEES
Here is HOW This WORKS__at least in My ScotiaITrade account.
First you HAVE to SET UP a SEPERATE $USD account in addition to your Regular $CDN account.
With DUAL LISTED securities__such as ENB__I can make ONLINE Requests to TRANSFER any number of shares BETWEEN my $CDN and $USD accounts__WITH NO FEES.
So to GET the BENEFIT of Taking Dividends in $USD__AND Pay NO FEES__You FIRST Have to
Either BUY shares IN Your $USD account__OR Transfer shares FROM Your $CDN account.
The Dividends that You Will Get IN YOUR $USD account WILL BE the $CDN Dividend CONVERTED BY Enbridge INTO $USD.
BUT__To AVOID all Exchange Fees__You NEED to DRIP Your Dividends IN YOUR $USD account__BECAUSED It is ONLY shares which CAN BE TRANSFERRED with NO FEES Back and Forth between Your US and CDN accounts__Transferring $USD into your CDN account WOULD INCUR Exchange Fees.
You Can OF COURSE Get CASH Dividends in Your USD account and BUY any US Listed shares You WANT TO__Including OF COURSE the NUMEROUS DUAL LISTED Companies.
THUS__When EVER You NEED to GET Some of Your Accumulated Dividends OUT of Your $USD account__You Would HAVE to Transfer FREE of CHARGE Some Enbridge shares__and Then SELL these shares IN Your CDN account__the Sale Commission WILL BE a LOT LESS than Any EXCHANGE Fees WOULD BE.
Right now for example the YIELD in $USD is Quoted as a Bit MORE than the Yield in $CDN.