DRIP Suspension Options?

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
Post Reply
cdntech
Newcomer
Newcomer
Posts: 3
Joined: 04 Feb 2017 19:01

DRIP Suspension Options?

Post by cdntech »

Hi All,

Newbie poster / dividend investor but frequent lurker. Just as a brief background. I started positions with 12 companies over the past year and a half with the intention of dripping and using the OCP options of each when I could. All of this was done via the respective transfer agents, Computershare and Canstockta, in a non-registered account.

Now I find that Artis REIT has supsended both their DRIP and OCP contributions just weeks before my recent contribution was to be instrumented. So I am curious to seek the advice of other investors who may have encountered a DRIP suspension in the past. Do any companies ever resume their DRIP plans? Is it best to ditch this company (i.e. liquidate my holdings) and pursue another stock that may meet my future needs? Do I hang on and wait in the hopes the DRIP may be resurrected but still hedge my bets by picking another couple of replacement stocks?

What would you do?

Other pertinent details:
- Desire is to have a portfolio of stocks with dividends that can supplement my income in retirement (small pension + RRSP/TFSA + cpp / oas)
- Will also be investing in ETF's for diversification and broader exposure
- Investment time frame is likely 20 years before needing these funds (but may be as early as 15 years).


Thanks for any hints or suggestions as always.

Cheers,
Cdntech
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9063
Joined: 08 Jun 2007 23:27

Re: DRIP Suspension Options?

Post by BRIAN5000 »

IMHO Drips are for kids, you shouldn't buy a stock based solely/mostly on if it has a drip/OCP. When I was starting out commission costs and my max monthly desired investment amounts made OCP's a nessacary evil now with trades at $9.99 or less I can easily keep trading costs low. Pseudo drips are also available but no extra cash. If I feel like wasting a bit of time I can usually cover the cost of the trade by watching the level ll quotes for from 10-20 minutes. If you decide that Artis is a good company irrespective of the drip keep it. Depending on amounts involved I'd start unwinding those non-reg drip positions and use TD-Eseries if amounts are small convert to Etf's in future.
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
pmj
Veteran Contributor
Veteran Contributor
Posts: 3412
Joined: 27 Feb 2005 18:15
Location: Ottawa

Re: DRIP Suspension Options?

Post by pmj »

There are some posters here who don't like DRIPs, esp in non-Reg accounts. Hopefully the OP's issue-specific Qs won't get buried by opinions on his chosen strategy ....
Peter

Patrick Hutber: Improvement means deterioration
cdntech
Newcomer
Newcomer
Posts: 3
Joined: 04 Feb 2017 19:01

Re: DRIP Suspension Options?

Post by cdntech »

Thanks pmj. My main intention was to see if anyone on this site had experienced a DRIP suspension before and how they dealt with it.

I can understand that not everyone is a fan of the DRIP methodology and can appreciate different view points in investing strategy. I can accept BRIAN5000's input and will definitely consider implementing an ETF strategy shortly.

Thank you both for your input.

Cdntech
pmj
Veteran Contributor
Veteran Contributor
Posts: 3412
Joined: 27 Feb 2005 18:15
Location: Ottawa

Re: DRIP Suspension Options?

Post by pmj »

Thnx, cdntech.
I've had a couple of treasury DRIP suspensions, and a couple that have eliminated the % bonuses (BMO dropped the % bonus a few years back, now reinstated). For me, treasury DRIPs and bonuses are secondary, not primary, factors in stock selection - so a change is more of a yellow flag than a red flag.
Peter

Patrick Hutber: Improvement means deterioration
Post Reply