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DRPs

DRPs (Notebook sub-tab)

Clicking on the DRPs tab reveals whether the company offers a dividend reinvestment plan/direct purchase plan and the specifics of those plans.

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Plan guidelines and requirements are displayed, as well as a phone number for more information or to enroll in the plan. This phone number may not be the company's, since many company's employee third-party agents to administer these plans.

Some companies offer different investment options in addition to the standard plan and these are identified through the DRP type. Partial allows you to receive cash dividends on some of your shares while reinvesting dividends on the remaining. Cash allows you to purchase additional shares by making cash payments directly to the plan.

Special features of each DRP plan are indicated with a checkmark next to the following:

  • Purchase initial shares directly from the company: You can make an initial purchase of shares of stock directly from the company (direct purchase plan).
  • Direct cash purchase of shares allowed: You can purchase additional shares via cash investment.
  • Frequency Limits: Indicate how often stock purchases are made by the plan with additional cash investments (normally monthly or with dividend payments).
  • Maximum and Minimum Investment: The minimum and maximum amount you are allowed to invest in the stock with additional cash purchases per period specified.
  • Automatic Investing: The company or plan agent automatically debits your checking or savings account at regular intervals to purchase additional shares. Fees and minimum investments for automatic investing options are also disclosed.
  • Discounts: Any dollar or percentage discounts that are offered for dividend reinvestment and cash purchase.
  • Fees: Any charges that are levied on plan participants for the purchase of company shares. Service charge indicates there is a service charge for share purchases. Broker indicates that participants pay prorated brokerage commissions on open-market purchases.

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