Enbridge Inc T.ENB

DRIP @ 80 CENTS HIGHER THAN MARKET YESTERDAY ??

[alhiemstra]

YESTERDAY CLOSING PRICE WAS $47.52 AND DRIP PRICE 80 CENTS HIGHER??
WHAT IS THE POINT OF A DRIP IF U CAN BUY OPEN MARKET 80 CENTS CHEAPER??
I DONT UNDERSTAND HOW THEY COME TO THIS PRICE!

ENBRIDGE INC DPP-Divd Pur Plan REINV @ 48.3957 C$ 12/01/21

[FiddyFiddyOddz]

I was under the impression ENB discontinued their DRIP program quite sometime ago..... Al wrote:"YESTERDAY CLOSING PRICE WAS $47.52 AND DRIP PRICE 80 CENTS HIGHER?? WHAT IS THE POINT OF A DRIP IF U CAN BUY OPEN MARKET 80 CENTS CHEAPER?? I DONT UNDERSTAND HOW THEY COME TO THIS PRICE! ENBRIDGE INC DPP-Divd Pur Plan REINV @ 48.3957 C$ 12/01/21"

[Red_Deer]

ScotiaItrade DO their OWN ""DRIPs"" on Companies I HOLD__that EITHER Cancell OR Do NOT Have a FORMAL DRIP ScotiItrade simply BUYS on the Open Market__and I get My ""DRIP"" shares @ No Commission Likely OTHER Brokers DO THE SAME ????

[Quintessential1]

Right you are fiddy.  This is a broker issue.

[FiddyFiddyOddz]

I dunno why anyone would rely on their broker to re-invest dividends.  Sure, if you re-invested the dividends yourself it would cost you a trading fee, but I'd rather pay that nominal fee and decide the price i wanted to re-invest, not the price the brokerage wanted to put me in at.  What's the point in saving 10 bucks on trading fees if it costs you a few hundred more to buy the

[Red_Deer]

Hey FIDDY__You are RIGHT__But ONLY IF You are Dealing With VERY LARGE DIVIDENDS like $1000 or More__THEN it Definitely BE BETTER to DO IT YOURSELF BUT for the Thousands of Retail Investors who get a Few Hundred $$$$ or Less__SAVING the Trading Commission by Letting the Broker DRIP the Dividend MAKES SENSE eh 

[Defiance2050]

Both you and fiddy make good points. Personally I leave dividends to the next purchase, not necessarily synthetically driping. Even on the conservative side savers usually make once every quarter purchases.  No longer need full 100 share lots to purchase stock and gradually more banks will add no-commision trades (and will fleece customers other ways).

[autofocus111]

alhiemstra They buy the shares on the open market, so the reinvestment price will be somewhere in the low-high range of the dividend payment day. You do save the commission you would pay if you bought the shares yourself. FYI: My Questrade account shows ENBRIDGE INC REINV@C$47.97193 REC 11/15/21 PAY 12/01/21.

[TickerTwit]

Also worth noting that Enbridge doesn't DRIP at this time, so all buying is done by your broker on the market as they see fit. Buying can take place over several market days and your price will usually be a volume-weighted average of the purchases.

[alhiemstra]

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!

[TickerTwit]

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