|Grocery giant offers investors a sweetener
|"Grocery giant Loblaw Cos. Ltd. announced a new dividend reinvestment plan (DRIP) yesterday that allows shareholders to use their dividends to purchase additional shares in the company at a 3% discount, a day after releasing impressive first-quarter profits. Loblaws follows Royal Bank of Canada, which sweetened its DRIP in February by offering a 3% discount and Bank of Montreal which announced a 2% discount."
|The internet is the new 'exchange'
|"Robert Gibb has 30 stocks with dividend reinvestment plans and share purchase plans in his portfolio. Only two of these stocks he bought through a broker. Normally, he exchanges shares with other people he finds on an online message board."
|DRIPs a cheap way to invest
|"There's no free lunch, even when investing on your own without an adviser. You still pay commissions to buy company shares, exchange-traded funds and income trust units. But you can get a free dessert (so to speak) if you reinvest the dividends to buy more shares, ETFs and trust units."
|Drop by drop, DRIPs build your wealth
|"Companies offer DRIPs to help raise capital and broaden their shareholder base. Some companies are eager enough to pursue these goals that they build a discount into the price of shares that investors buy through dividend reinvestment or SPPs, or they provide a small bonus of extra units. Discounts run from 2 to 6 per cent of the market price at the time the shares are purchased, while the bonuses are usually in the 3-per-cent range and apply to the amount being reinvested. "It's a pretty sweet deal and well worth using," Mr. Rothery said."
|Invest one drip at a time
|"Investing relatively small amounts every month in dividend stocks can add up to big money in the long run. Here's how to figure out what to buy -- and how to buy it."