Tag Archives: drip

Can I DRIP US Stocks from a CIBC Investor’s Edge Self-Directed Account?

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We cannot DRIP US stocks like Walmart and McDonald’s using our BMO InvestorLine self-directed investment account. That led me to wondering whether we could set up a synthetic dividend reinvestment plan for US stocks under our CIBC Investor’s Edge account.

So I wrote an email to Investor’s Edge to ask. Unlike BMO, I could not use a secure MyLink email service to send the request. I had to use my regular email program to contact Investor’s Edge. They replied promptly and courteously.

Good News!
The answer was “probably.” If a stock pays dividends and offers a dividend reinvestment plan, and if the stock is listed on the S&P 500 index, then it probably can be enrolled in a synthetic DRIP through CIBC Investor’s Edge. They recommend that clients phone and ask about specific stocks prior to buying the stocks or prior to trying to enroll them in the DRIP.

They also advised that as of January 2013, both Walmart and McDonald’s stock were eligible to enroll in the Investor’s Edge DRIP through their ShareBuilder Plan program.

For more details on how the synthetic DRIP works, please see other articles on this site.

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Have you DRIPped any US stocks inside an Investor’s Edge account? Did it work as you planned? Please share your experiences with a comment.

Can You Buy Additional Shares for No Fee Using a BMO InvestorLine DRIP?

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If you participate directly in a DRIP by registering your shares with the Transfer Agent (such as ComputerShare) for the stock, you may be able to purchase additional shares without paying any fee or commission at the time of each dividend reinvestment. For example, at the time this was written, you could purchase additional shares of Fortis. I wondered whether participants in a BMO InvestorLine synthetic DRIP could also purchase more shares when they received their quarterly dividends from Fortis. So I asked, using MyLink the secure email function.

Purchasing Additional Shares through a Genuine DRIP for No Fee

Although there is no discount on the price of shares under any circumstances, it is possible to buy additional shares in Fortis at the same time as the dividends are being re-invested.

That means additional shares can be purchased four times a year. It’s done by sending a cheque which must arrive at the transfer agent early enough to clear at least three business days before the dividend date. The shares will be purchased at the Average Market Price as defined in the Fortis DRIP agreement.

The financial advantage of making this type of purchase is that no brokerage fee or commission is required to make the purchase. So if it normally costs you $9.95 to purchase shares, you would save that $9.95 fee.

Is It Possible to Purchase Additional Shares through a Synthetic InvestorLine DRIP for No Fee?

Can I buy more shares in Fortis through the InvestorLine synthetic DRIP without paying any brokerage fee? Unfortunately, no.

The MyLink agent responded that, “Regretfully share purchase plans are not available for purchase through BMO InvestorLine.” I guess that’s my regret, not theirs!

So at this point, you are stuck with paying the commission when you want to buy additional shares in the same company. Regretfully.

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Do you participate in a real DRIP and take advantage of the ability to buy additional shares with no fees or commissions? Please share your experiences with a comment.