Dividend Reinvestment Plan Question

clowboy said:

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

Click to expand...

bond21 said:

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.

Click to expand...