• Australian (ASX) Stock Market Forum

Hello and welcome to Aussie Stock Forums!

To gain full access you must register. Registration is free and takes only a few seconds to complete.

Already a member? Log in here.

Dividend Reinvestment Plan Question

Discussion in 'Beginner's Lounge' started by clowboy, Jan 23, 2005.

  1. clowboy

    clowboy

    Posts:
    752
    Likes Received:
    1
    Joined:
    Aug 15, 2004
    Hi,

    Hoping someone can answer this question for me.

    If you participate in the DRP of a company but sell your share (after EX-DIV date) what would happen to your dividend entitlement? Would they send a check or would you be issued with shares?

    Thanks
     
  2. JohnnyC

    JohnnyC

    Posts:
    1
    Likes Received:
    0
    Joined:
    Jul 22, 2009
    Hi Clowboy,

    You would be issued with new shares.

    Regards,
    John
     
  3. bond21

    bond21

    Posts:
    7
    Likes Received:
    0
    Joined:
    Dec 3, 2014
    Quick question about Dividend Reinvestment Plans

    So I'm reading up on them and some American sites are saying if you want to sell the shares you've acquired on the DRP, you have to sell them back to the company that issued them. That you can't sell the DRP shares on the open market.

    Now I don't believe that's the case in Australia, I thought the shares you got in the DRP are the same as if you bought them on the open market, they're just additional shares being issued by the company. So I'm thinking it's a difference between Australia and the US but I'm not 100%.

    So just want to confirm that the shares you acquire on a Dividend Reinvestment Plan are in fact able to be sold on the open market, and have no restrictions.
     
  4. ROE

    ROE

    Posts:
    2,966
    Likes Received:
    15
    Joined:
    Jan 5, 2007
    Re: Quick question about Dividend Reinvestment Plans

    yes DRP shares plan in Australia rank the same as all other shares and you can sell them on open market,
    your holding will increase by X amount of shares after your DRP purchase has been allocated
     
Loading...

Share This Page