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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (35323)	9/10/2009 1:50:55 PM
From: E_K_S	Respond to of 78753

Thanks for the update - SFL started paying their divided with the option in stock. You have to alert your broker that you want the stock rather than the cash two weeks before the pay date. In addition, SFL pays you in stock at a 5% discount from the 14 day average market price. It's a great deal and I receive the stock directly in my brokerage account. I receive a 1099 and pay tax on the dollar amount of the shares received. This is a short term thing as SFL wants to conserve their cash by issuing new shares. This has occurred for 3 dividend cycles and will probably end soon. The only other time I received stock w/o a drip program was many years ago (in the 80's) with BofA stock. You could also buy stock at a 5% discount to market each month directly from the company. BAC was around $5.00/share. I bought as much as I could each month (w/ the 5% discount) and ended up selling the shares around $25.00 per share. Stock went up over $60/share and then the shake out in 2009 to $3.60/share. All other drip programs I used to participate in had a separate custodian that had to hold the shares. I really like SFL's offer for their stock dividend (w/ 5% discount)and believe an innovative brokerage company could provide a similar service for many other companies. EKS