Personal Finance

how to set up DRIP ???

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  • Sep 16th, 2014 7:36 am
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[OP]
Jr. Member
Mar 12, 2009
114 posts
20 upvotes
Toronto

how to set up DRIP ???

Hi all,

I own a few a few dividend stocks in my Scotia itrade rrsp account. I have enrolled in the 'DRIP' program with Scotia,but they only allow to purchase full share. The dividend I got every quarter is never enough to purchase a full share, I know some company I invested in offer DRIP that allow to purchase a fractional share. Does anyone know how can I set it up? Do I need to open a new rrsp account with them?
I tried to contact them multiple times but it didn't went through.

Please let me know.

Thanks
14 replies
Deal Fanatic
Jun 17, 2013
5120 posts
1489 upvotes
Montreal
im no expert, but don't you need to directly own in the company to do fractional DRIP? So you would buy via the company and not through your broker.
Deal Addict
User avatar
Feb 6, 2012
4779 posts
345 upvotes
Gloucester, Canada
ray1202 wrote:
Sep 15th, 2014 8:27 am
Hi all,

I own a few a few dividend stocks in my Scotia itrade rrsp account. I have enrolled in the 'DRIP' program with Scotia,but they only allow to purchase full share. The dividend I got every quarter is never enough to purchase a full share, I know some company I invested in offer DRIP that allow to purchase a fractional share. Does anyone know how can I set it up? Do I need to open a new rrsp account with them?
I tried to contact them multiple times but it didn't went through.

Please let me know.

Thanks
1. go here and read all about it http://www.dripprimer.ca/
2. register an account here: http://dripinvesting.org/boards/boards.asp and read the board so you can see who is selling a certificates of the company you wants and start dripping.

Both of these sites also have good information on how to do your ABC for tax purposes. I don't believe you can Drip in RRSP other than the Synthetic drips that you are doing with the brokers.
Koodo & Public Mobile customer
Deal Addict
User avatar
Jan 14, 2012
1241 posts
280 upvotes
Woodbridge
Overly complicated process IMO but worth it, essentially you need someone with existing shares to transfer you a share, they will complete the process for you and you will usually include an additional $10 for the setup per share. An alternative is you can do this through your brokerage account but many charge several hundred dollars to do this for you. You will need to do this for each company that you want to DRIP so it may take some time to setup your entire portfolio unless you find someone that holds many companies.

http://www.dripprimer.ca/ this site will give you all the information you need to get started, also I believe Tim Hortons has a method setup you can directly buy a share from them now to setup your DRIP.
[OP]
Jr. Member
Mar 12, 2009
114 posts
20 upvotes
Toronto
Jon Lai wrote:
Sep 15th, 2014 9:07 am
Don't bother with fractional DRIP. I always try to buy enough to at least get one share every time a dividend is issued.
I can't afford to buy enough to reinvest in one share. . . .
and when share price went up, you will need to purchase more just to get that one additional share. . .
Deal Addict
User avatar
Feb 6, 2012
4779 posts
345 upvotes
Gloucester, Canada
Jon Lai wrote:
Sep 15th, 2014 9:07 am
Don't bother with fractional DRIP. I always try to buy enough to at least get one share every time a dividend is issued.
it works well for those with $$. Driping is great for those that just started and try to accumulate share while learning. I know commision fee is much cheapers compare to a year or for those that not trading much and don't have much money but wants to accumulate shares, Driping is the way to go
Koodo & Public Mobile customer
[OP]
Jr. Member
Mar 12, 2009
114 posts
20 upvotes
Toronto
Thanks for the quick reply, I have a few more questions hoping you can help answer.
1) is there are anyway i can DRIP in my RRSP account? because it doesn;t make sense to withdraw the share to a non-register account and pay the tax just to set up DRIP.
2) If i purchase more share in the future, do i have to repeat this process again? (ie: get the certificate, enroll the additional share to DRIP)

Thanks in advance
Deal Addict
May 22, 2003
3369 posts
1451 upvotes
Vancouver
Most online stockbrokers have an option where they will automatically DRIP your stocks for you (assuming you have enough shares to DRIP)
And yes, you can DRIP in your RRSP
Deal Addict
Jun 2, 2012
1196 posts
420 upvotes
GTA
ray1202 wrote:
Sep 15th, 2014 2:15 pm
Thanks for the quick reply, I have a few more questions hoping you can help answer.
1) is there are anyway i can DRIP in my RRSP account? because it doesn;t make sense to withdraw the share to a non-register account and pay the tax just to set up DRIP.
2) If i purchase more share in the future, do i have to repeat this process again? (ie: get the certificate, enroll the additional share to DRIP)

Thanks in advance
Click on your account
then on this bar
Account Details
Transaction History
Realized Gain/Loss
Additional Services

Then click on -> Manage DRIP/DPP Enrollment

Give it a day or two to update.. after your buy a share or enroll
[OP]
Jr. Member
Mar 12, 2009
114 posts
20 upvotes
Toronto
GSpeed wrote:
Sep 15th, 2014 3:25 pm
Click on your account
then on this bar
Account Details
Transaction History
Realized Gain/Loss
Additional Services

Then click on -> Manage DRIP/DPP Enrollment

Give it a day or two to update.. after your buy a share or enroll

Sorry for the confusion, what i meant is "is there are anyway i can DRIP in my RRSP account to reinvest in half-share instead of full-share?"
Deal Addict
User avatar
Dec 8, 2010
2403 posts
851 upvotes
ray1202 wrote:
Sep 15th, 2014 3:50 pm
Sorry for the confusion, what i meant is "is there are anyway i can DRIP in my RRSP account to reinvest in half-share instead of full-share?"
No.

Nonody does partial shares except directly through the transfer agent. And that is unreg only.

Also, Tim's is no good now - they've suspended optional cash purchases.
Deal Addict
Jun 2, 2012
1196 posts
420 upvotes
GTA
ray1202 wrote:
Sep 15th, 2014 3:50 pm
Sorry for the confusion, what i meant is "is there are anyway i can DRIP in my RRSP account to reinvest in half-share instead of full-share?"
Not that I'm aware of.. why don't you just keep the money in your account?
From the sounds of it.. it doesn't sound like it would be a lot anyways.. considering you can't even buy 1 share..
I'm not making fun of you or anything....

If I was in your shoes, I would get the cash... let it build up.. then when you can add more money to your RRSP's. 1k, 2k+ etc..
Then buy some more, 1k + whatever money from dividends you have gained
[OP]
Jr. Member
Mar 12, 2009
114 posts
20 upvotes
Toronto
GSpeed wrote:
Sep 15th, 2014 4:13 pm
Not that I'm aware of.. why don't you just keep the money in your account?
From the sounds of it.. it doesn't sound like it would be a lot anyways.. considering you can't even buy 1 share..
I'm not making fun of you or anything....

If I was in your shoes, I would get the cash... let it build up.. then when you can add more money to your RRSP's. 1k, 2k+ etc..
Then buy some more, 1k + whatever money from dividends you have gained
Was hoping I can increase holding without paying commission, but what you said make sense too. At least it will allow me to control the purchasing price. Thanks
Deal Fanatic
Feb 1, 2006
9512 posts
636 upvotes
Muskoka
With super cheap trading fees nowadays, I gave up on DRIP's. I just let my dividends pile up in cash account, and then buy something I want when I get to around $4-5k. This allows me to rebalance easier as well. A $10 commission on $5k is .2%, and I tend to buy and hold my stocks pretty much forever, usually, so not too worried about it.

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