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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks

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To: J-R who wrote (2805)	3/13/2002 9:14:31 AM
From: Marcman	of 11633

I have done DRIPs two ways and here's how it works: 1. If you have the shares in a brokerage account, check to see if the equity or trust you hold is on their DRiP list. Not all companies are on all brokerage DRiP lists. If your trust is on the list, then you just sign it on to the DRiP and the brokerage actually buys you shares on the open market each time there's a distribution or dividend. You don't get any partial units this way. They don't charge a full commission, but some have an actual DRiP charge. This is NOT the best way to DRiP, but the only way you can if the stock is in your RRSP. Using a brokerage plan, you don't get to buy more units or shares commission free. 2. This is the preferable way. You buy shares of the trust through your broker and then ask them for a share certificate. (This will cost $30 -- but it will be worth it.) Once you have the share certificate, you contact the company (DRiP forms on their websites) and get on the DRiP program. Each month or quarter your dividend is automatically paid out in new units -- INCLUDING partial units, which add up, especially with monthly distributions. Most Trusts also let you buy more units WITHOUT COMMISSION each time a dividend is paid out. In fact, one that I hold gives DRiP plan members a 5% discount on the average unit price for the previoius 20 days. The second way is really the way to go. You get your dividends converted and, each quarter, you can simply send a cheque for as much or as little as you want to buy more units -- because there's no commission. I hold a trust that pays quarterly (Shiningbank) and when I have a bit more money I buy a few more units at distribution time. Even when I'm broke, I can still send a check for $50 or $100 because it buys units without any commission so none of it's wasted. Hope this answered your questions, even though it was long-winded. Pick a trust that you want to hold for a long time and get on its DRiP plan. I think you'll enjoy it. GLTUA, Marcman

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